The mile-long section in Renishaw, which lies close to the original canal alignment, is land-locked and virtually empty of water.
Work is needed, subject to planning permission, to make the structure watertight and rebuild the overflow-weir so it is ready to connect to further sections of the canal when they are restored. A temporary pumping system would need to be installed to supply water from the River Rother to the canal and the towpath resurfaced to make it suitable for pedestrians and cyclists.
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Further work is also proposed to resurface a further 915 metres of towpath to provide a circular 2.5km surfaced route incorporating the Trans-Pennine Trail. And new picnic benches, signage and cycle stands would also be installed.
The original canal was completed in 1777 and stretched 46 miles in total, providing navigation between the River Rother at Chesterfield and the River Trent at West Stockwith in Nottinghamshire. The section in Renishaw was rerouted in the 19th century with the building of railways.
This latest project is part of a wider ambition to make the whole route from Chesterfield to Kiveton navigable with nine miles yet to be restored.
The restoration is expected to cost around £400,000 with the council contributing £200,000, the trust providing £150,000 and the remaining £50,000 being funded by the Inland Waterways Association. The work will be done by volunteers from the trust.
