The Government has agreed to give £92.5m to build the Guided Busway from St Ives to Cambridge.
The busway will provide high quality, reliable and frequent public transport services along a dedicated and segregated route away from busy local roads.
It will be built from St Ives through to Cambridge on a disused railway line that links a number of villages.
When buses get to Cambridge they will turn on to the normal roads and travel through the City Centre stopping at normal bus stops.
Buses can then rejoin the guideway at the railway station and continue their journey on dedicated and segregated guideway through to Addenbrooke's hospital and Trumpington Park & Ride to the south of the city.
The scheme will cost a total of £116.2m to build and Government will pay £92.5m towards that cost.
The rest of the funding will come from developers in the area who are building new houses.
By 2016 more than 47,000 new houses will be built in the Cambridge sub-region.
The County Council is committed to ensuring that the right sort of facilities are in place to cope with the extra demands of thousands of new residents.
If you would like to be kept up to date with news about the Guided Busway project please contact us using the details on the right-hand side of the screen.