Cavan Sports Partnership in association with Sport Ireland has provided €40,000 in funding to Bailieborough.
The money will be used to create an outdoor activity hub in and around the town and is the first of its kind in the county.
Cavan Monaghan Fianna Fail TD, Deputy Niamh Smyth, says the focus will be on the town lake and and the provision of green spaces at Castle Lake.
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She highlighted how the creation of these green spaces will make the town more attractive to families who want to live locally.
Deputy Smyth added that the funding was a 'positive' development for residents and business people in Bailieborough.
