Cottingley Town Hall, where the girls behind the fairies legend went to school, is to undergo a major facelift after landing a National Lottery grant of £152,500.
The news has delighted its supporters who have spent years fighting to secure its future as the hub of village life.
The money will be used to repair the roof as well as joinery and plasterwork, drainage, masonry and architects' fees.
The building has always been associated with the fairies. When Mel Gibson's production company made a film about them part of it was shot in the schoolroom where Elsie Wright and Frances Griffiths were taught.
It is also used by cubs and scouts groups, as a drop in centre and as a church when it stages occasional weddings and funerals.
Maurice Atack, chairman of its executive committee and lay pastor there for the past 40 years, said: "We are ecstatic about it and overjoyed with the news that at last we can get on with the work. It means we can now preserve the building for future generations.
"The roof has been a problem - the slates were put straight onto the slats and the building has never been waterproof so that will be one of our first priorities. We have known what needed to be done but we simply didn't have the money. It means a lot to me. I was born, baptised and brought up there.
"Once we get it refurbished we will be able to use it more. It has been underused in the past. We have one final thing to do, sign contracts, and then the work can go ahead. We would like it to start as soon as possible.
"I would like to pay tribute to my colleague, Hilary Tillie, who has put such a lot of time and effort in to make our proposal a success."
But despite the huge contribution from the Lottery, the trustees and Friends of Cottingley Town Hall still have their work cut out to raise another £27,000, said Mr Atack.
He added: "This is to pay for all the things the Heritage Lottery Fund does not pay for including electrical items and the boiler house."
The Grade II listed building was built by villagers in 1865 on land donated by various dignitaries including the Ferrands family of St Ives. It has a limited income which derives from church collections, lettings and fundraising.
Mrs Tillie, chairman of the Hall's trustees, said although she was delighted by the news, the grant was conditional upon raising £12,000 for the hall to be rewired and a further £2,000 for the boilerhouse.
She said: "It hasn't really sunk in yet. It's a massive sum but this is just the start and I hope the village community will back us in our fund-raising attempts.
"We couldn't possibly have done the repairs ourselves which would have meant closure in the end. I hope we can start work by the end of the year."
Council leader Councillor Margaret Eaton, (Con, Bingley Rural), one of the trustees, said: "I'm absolutely over the moon and thrilled about it. Everyone has worked so hard to keep it going in difficult times.
"The building is incredibly important and it serves the community in a way that no other organisation can do and is part of the heritage of Cottingley."
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