Mousehole is just one of a dozen areas across England that has been awarded significant cash to address the risk of flooding.
The total sum being spent in Mousehole now amounts to £1.4m which will be used by the Environment Agency to reduce the flood risk across the village.
West Cornwall MP Derek Thomas said he was delighted with this outcome after working with Cllr Roger Harding to find a means to avoid further flooding that has brought concern to residents and at least twice caused severe flooding on the site of the school.
"In early August I chaired a meeting of local business owners, the Environment Agency, South West Water, Cornwall Council and community representatives to discuss various infrastructure issues in the village including the problem of a failed pipe on the rising main in Mousehole," said Mr Thomas.
"The pipe started leaking in May, having been corroded by grit and sand, and a temporary, surface, pipe was installed.
"At the meeting, South West Water were left in no doubt that this job – and a permanent solution – must be seen as a priority, with the required work being done out of season and avoiding the Christmas Lights.
"At the same time, it was outlined how the wider flood risk management work should be completed by 2021 by which time I hope that people in Mousehole will have one less problem to worry about.
"The risk of raw sewage escaping and flooding is not something you want weighing on your mind."