* The draft 2020 plan shown to the public earlier this year.
The 2020 group has been working to ease parking problems and traffic flow, two of the most difficult problems in the town.
It plans to make the area a more pedestrian friendly environment and to provide a more attractive, pleasant and prosperous town centre.
Llangollen 2020 is one of only two schemes in Denbighshire to receive funding from the Welsh Government’s Local Transport scheme following successful applications submitted by the county earlier this year.
The grant comes after the working group held showcase events at council offices in Ruthin and Denbigh to promote the scheme and attract funding towards its estimated £2.5 million cost.
Graham Timms, chair of Llangollen 2020 and Welsh Labour county councillor for the area, said: “We were delighted with the interest and enthusiasm for the scheme that was shown by county councillors, cabinet member and officers of Denbighshire County Council and they were pleased to hear that the scheme has widespread support amongst the community. The awarding of a £20,000 grant from Welsh Government too is a great encouragement.”
Town councillors Robyn Lovelock and Tony Baker joined Llangollen’s county councillors Melvyn Mile and Graham Timms on the promotion “roadshow”.
Cllr Lovelock, who is also a member pf the 2020 working group, said: “The final report from a professional consultancy, Arcadis Consultants, is expected to be published in the next few weeks but it is already predicted that the proposals will lead to a 20% increase in the economy of the town.
"It also shows that more than 100 new full-time jobs for local people will be created."
The Welsh Government's Transport Secretary Ken Skates said: “I’m delighted that a host of transport projects across Wales will be allocated funding from the Local Transport Fund.
“These schemes have the potential to make a massive difference to people’s everyday lives, with improvements to transport networks, infrastructure and cycle lanes making it easier to choose active and sustainable travel.
“These projects support our ambitions to provide a modern and connected transport infrastructure, whilst further boosting our efforts to encourage healthy and active lifestyles.
“This funding could also prove a shot in the arm to the Welsh economy by making it easier for people to travel for both business and leisure.”