CHIPPENHAM'S Museum and Heritage Centre has been awarded a £195,000 grant from the Heritage Lottery Fund.
The news means that ambitious plans for extra galleries and an education centre can be put into action.
Phase II of the heritage centre project will take off next month costing about £400,000.
A state-of-the-art education centre, complete with video and audio systems and seating for 40 people will give children, students and adults the chance to learn more about Chippenham's history.
The appointment of an education officer at the centre will also result in a major programme, with outreach work as well as in-house projects.
The heritage centre will be seeking to recruit the officer in February or March next year.
Centre manager Mike Stone said: "We will be able to find out much more about how the town grew on the back of industry, about the social side of life in Chippenham, and the trades."
The Phase II development will transform the first floor of the building.
The first new gallery will allow 50 water colours of Victorian Chippenham to be displayed for the first time.
The pictures, by JH Jolliffe, were painted between 1861 and 1866.
"They turned up in Croydon Central Library and they were transferred to us," said Mr Stone.
The pictures are in perfect condition and will require dimmed lighting to make sure they do not fade.
The second gallery will include a history of Maud Heath, including work by A-level student Zoe Hawkins.
One display case will explore the effects of war on Chippenham and another secure cabinet will contain Chippenham Town Council's silver collection.
The third new gallery will follow the theme Made In Chippenham, and items are still being collected for inclusion.
Some of the town's businesses will be featured, including the Chippenham Aerated Mineral Water Company and Slade Brewers.
Volunteer curator Mike Brotherwood has also undertaken to build a working model of the town's old flour mill.
A special corridor gallery will give visitors the chance to see how Chippenham's High Street and Market Place have developed since Stuart times, with a panorama of images past and present.
Chippenham Rotary Club has given a £6000 grant to the heritage centre to furnish a new research room with an archive system, so that local historians will be able to view photograph collections or papers and documents relating to the town.
The education centre, once a courtroom, will provide the town with a valuable new venue.
It will be available for meetings held by local groups as well as for use by school parties.
"We've already had four groups saying they want to hold their monthly meetings here," said Mr Stone.
The four garret rooms above the new galleries will be refurbished to provide storage space for exhibits, each with a micro climate suitable for the protection of different artefacts.
Mr Stone paid tribute to the 74 volunteers who help to run the centre.
"It really is becoming a community museum," he said.
"The lottery fund assessors were impressed by the amount of help and community involvement. I think that helped us gain the grant," he said.
Match funds for the Phase II development will come from the Borough Lands charity, Chippenham Town Council and the Rotary Club.
Mr Stone is also looking for sponsorship from local companies for specific items.
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