Hyndburn is to get a direct rail link to Manchester for the first time in almost 50 years.
The move, which will see travel times to the city halved, is expected to create around 1,000 jobs for the local economy. Rail bosses this week announced plans to reinstate the 500 metres of track in Todmorden that were decommissioned as part of the Beeching cuts in the 1960s to complete the line.
Since then rail commuters have had to change at Blackburn or Preston when travelling to Manchester.
The move, which will slash journey times to around 45 minutes, has been hailed as "great news for the residents of the borough" by Hyndburn MP Graham Jones.
He said: "This improved connection with Manchester and the south will make Hyndburn a viable part of Manchester’s commuter belt, and allow the area to take full advantage of the economic opportunities this brings.
"If the council get the town centre strategy right, in particular regarding the heritage funding bid, then there is a fantastic opportunity for Accrington to become an attractive destination."
It is hoped the moves will not only open up opportunities for workers to find work in Manchester, but will also make Accrington a more attractive place for businesses to set up.
Hyndburn council leader Miles Parkinson said: "The announcement is really good news for Pennine Lancashire and Hyndburn.
"A direct link straight into the heart of Manchester opens up Hyndburn to commercial and business interests and to those who aspire to beautiful countryside which we have. It will hopefully get growth going in Hyndburn."
The second funding round included another major boost for the borough, with Regenerate Pennine Lancashire awarded £7.5 million.
The funds will allow Regenerate to provide direct grants to businesses to bring forward their investment plans.
The Todmorden Curve will join the lines that run from Burnley and Manchester into Hebden Bridge, removing the need for trains to go into Yorkshire.
Steve Hoyle, managing director of Regenerate Pennine Lancashire said: "It’s absolutely brilliant news.
"It’s such a vital economic link between the Manchester and Pennine Lancs travel to work areas.
"The ability to halve journey times is a powerful economic driver.
"For a lot of people the travel time is prohibitive for people seeking employment opportunities in Manchester.
"Equally those people who are working in Manchester and looking to live in a less congested area with a very good rural environment could easily live in Pennine Lancashire and commute to Manchester with the Todmorden Curve in place."
County hall bosses said it could potentially create up to 1,000 jobs within a decade.
County Councillor Tim Ashton, cabinet member for transport, said reinstating the Todmorden Curve is vital for boosting jobs and economic growth.
The announcement made on Monday, October 31 by the Deputy Prime Minister Nick Clegg was part of the Government's £1.4 billion Regional Growth Fund.
Simon Leyshon, principal programme sponsor from Network Rail, valued the overall contribution to the north of England's economy at £4 billion.
"The Todmorden Curve project will open up all the tourist and leisure opportunities the city has to offer," he said.
A spokesman for train operator Northern Rail said: "We have been pleased to support the proposal and look forward to working in partnership with Lancashire County Council, Network Rail and the Department for Transport on future developments."