A $107-million stormwater management project will help prevent neighbourhood flooding in Mill Woods.

The federal government will contribute up to $30.3 million to the project. The Alberta government's share will be up to $11.9 million. The City of Edmonton will cover the rest, up to $65 million.

The project is designed to improve the region's capacity to deal with rain by providing overland storage for stormwater and increased capacity in the storm-sewer system.

The money will be used to increase capacity in the storm-water system and to build three dry ponds to use as catchment areas.

The project will help protect more than 1,000 properties, including homes, schools and local businesses.

It is in response to flooding in Mill Woods. In 2012, more than 500 homes reporting flooding after heavy rain.

The city's original plan to deal Mill Woods flooding was supposed to be finished in 2013 at a cost of $40 million, but problems with the soil resulted in long delays and huge overruns in the budget.

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Water flooded many neighbourhoods in Mill Woods in southeast Edmonton in July 2012 after 70 millimetres of rain fell in less than one hour. Water poured into basements and floated cars away. (Courtesy of Chris Premji)

Clarence Nelson has lived in Mill Woods for 15 years.

He called the news "terrific" but added living with the construction delays has been frustrating.

"It just appears to be a sort of a chronic, long term issue and that just wears on you over time",  he said.

In a news release, Mayor Don Iveson said the city appreciates the other levels of government helping with the flood-mitigation project.

"We look forward to continuing to work together to invest in local infrastructure, which we know will not only create jobs and grow our economy but improve the lives of Edmontonians."

Amarjeet Sohi, the federal infrastructure minister, said he knows how important the project is to Mill Woods, where many of his friends and family live.