Work on a new playpark in Strathfoyle is expected to begin in the coming weeks.
Dungannon company, MP Coleman Ltd, has been contracted to complete the project.
The project is jointly funded by Derry City and Strabane District Council and the Department for Communities.
The plans follows several years of campaigning for a new play area by the local community.
Strathfoyle residents have gathered to protest in the Guildhall Sq after funding was refused for a new play park pic.twitter.com/R39UpLURo6
— Rebekah Logan (@Rebekah_Logan) August 14, 2015
Alex Duffy, Chairperson of Strathfoyle Community Association, paid tribute to all those who have been working to achieve better play facilities for the area, he said:
"The people of Strathfoyle are very excited with this news.
“We would like to thank DCSDC for all their hard work and commitment to the people of Strathfoyle.”
Enagh Youth Forum is among a group from the area involved in campaigning for new facilities throughout the area.
Community Activist, Paul Hughes, said:
“Finally it's happening! The long campaign for this play park was led by local people whose resilience and tenacity helped to make it happen. Well done to all concerned!
“This new play park will go some way to addressing the historic legacy of neglect of this community but there is much more to do."