The second round of funding has been unveiled for village renewal schemes in Armagh, Craigavon and the Newry & Mourne region.
Councillors from the Southern Organisation for Action in Rural Areas Partnership (SOAR) have urged local people to apply for grants to carry out village development projects.
Funding is also available for conservation schemes and the upgrading of rural heritage.
Newry and Mourne Mayor John Feehan described rural development funding as an "excellent vehicle" for creating sustainable rural services.
Micheal McCoy, Chairman of the SOAR Local Action Group, said the funding has the potential to make a real difference to the lives of rural residents throughout the area, and encourage an innovative approach to the delivery of rural services.
"This funding provides an excellent opportunity for communities to help deliver services to bridge gaps in local provision, support village improvement plans and benefit the cluster areas, conservation and heritage assets," he said.
Councillor Josephine O’Hare, Chairperson of SOAR Joint Committee, highlighted the impact which the rural development funding could have on rural communities and businesses.
"Im delighted to announce the opening of this vital funding for the community and voluntary sector," she said.
"It is an excellent opportunity for these sectors to apply for much needed funding for the delivery of rural services that will help address a range of issues encountered by rural residents."
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