Derry and Coleraine are set to receive a share of £1.5 billion (€1.8bn) in UK funding for neighbourhoods.
The city and town are among 75 communities across Northern Ireland, England, Scotland and Wales from the scheme.
Each of the selected areas are to received up to £20 million (€24m) of support over the next decade.
The UK government said the funding will help to transform areas that may have been left behind and unleash their full potential by investing in delivering improved community services from education, health and employment, to tackling issues such as crime.
Neighbourhood boards - made up of residents, businesses and campaigners - are set to implement a local vision for the plan.
Options range from repairs to footpaths and main streets, to setting up community grocers providing low-cost alternatives when shopping for essentials, as well as co-operatives or even neighbourhood watches.
This is the latest step in the UK government's mission to grow the economy, deliver safer streets and create opportunities for everyone.
Northern Ireland Secretary Hilary Benn said he is delighted with the plan, which he said will deliver a "hugely welcome boost" for Coleraine and Derry.
He said the UK government "is committed to supporting growth and public service transformation in Northern Ireland and through the budget we are delivering the largest real-terms funding settlement for Northern Ireland since devolution."
