Work on the water quality restoration is expected to be complete by March 2023.
"We're committed to doing all we can to address the issues of water quality in our rivers, to protect and enhance these important wildlife habitats," councillor John Harrington, cabinet member for infrastructure and transport said.
He added: "We cannot stand by while our rivers are struggling, not just because of the impacts that restrictions have brought our precious county building industry but because we must restore the ecology and bio-diversity of our beautiful Lugg and Wye."
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