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Plans to redesign Wick High Street have received a share of more than £26m from Transport Scotland (TS).
The more than £2m, secured through the Scottish government's Active Travel Infrastructure Fund, is to be used to make it easier for people to walk, wheel and cycle through the town centre.
The plans are part of a wider regeneration project to boost the fortunes of the town, which has suffered from economic and social change over the last few decades.
Highland Council leader Raymond Bremner said: "This has been long awaited and we were never sure in the challenging financial times if we would ever be successful."