The long-awaited £2 million revamp of Keighley bus station will take place over the next 12 months.
Funding for the extensive improvements comes from next year's £7 million Bradford Transport Package.
The Government is allowing Bradford council and West Yorkshire Passenger Transport Authority (WYPTA) to spend the sum on an integrated package of measures.
These will include public transport improvements, efforts to encourage walking and cycling, safety schemes and road and bridge repairs.
The bus station improvements, which are funded by WYPTA, are aimed at easing bus operation while improving safety to pedestrians.
They are being supported by council-funded improvements to North Street, Cavendish Street and East Parade, and town centre regeneration initiatives.
Up to £50,000 will be spent on improving passenger facilities at Steeton and Silsden station.
Further work will be carried out on a new cycle network, providing secure cycle parking facilities.
Pedestrians will be supported through crossing upgrades, new dropped kerbs, new safer routes to schools, footpath improvements and the Walking for Health initiative.
More than £100,000 has been set aside for traffic calming in villages and £75,000 for improvements at junctions.
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