Dwr Cymru Welsh Water has pledged to invest £160,000 in environmental projects.
Funding from the not-for-profit company will be available to voluntary and community groups through two schemes.
The ‘Water Framework Directive Funding Scheme’ is receiving £100,000 for projects that aim to improve inland, ground or coastal waters.
It will also help implement the objectives of the European Union’s Water Framework Directive in Welsh Water’s operating area which is intended to improve water quality.
Tony Harrington, Director of Environment for Dŵr Cymru said: “The schemes offer funding which can help get projects off the ground for community groups and from our experience with the Water Framework Directive Funding Scheme these projects are successfully delivering real and tangible results.”
The rest of the funding will be used to reduce the growth and spread of invasive non-native species which threat animals and plants.