Over €8 million is being granted to Kilkenny County Council by the government for developments which would allow for two new school campuses and almost 1,000 new houses.
The announcement was made this afternoon and is all for the Western Environs of the city.
Another €2.75 million is to be put forward by Kilkenny County Council.
The money will go towards building a distributor road from the Callan Road to the Circular Road, upgrading the Circular Road to the Kilmanagh Road and a number of other works.
Local Councillor Pat McKee says this will then allow for 995 homes are to be constructed almost immediately, along with the two badly-needed new school campuses for Coláiste Pobail Osraí and Kilkenny City Vocational School.