Barratt Homes has donated £1,500 to the Whitchurch Waterway Trust for a towpath improvement project.
The contribution, part of the homebuilder's Community Fund scheme, will be invested directly into the Trust’s projects.
Mark Lacey, chair of the Whitchurch Waterway Trust, welcomed the donation.
He said: "The Whitchurch Arm is part of a green walkway between the town centre and the surrounding countryside which is used by walkers, boaters, anglers and cyclists."
According to Mr Lacey, the Trust plans to put the donation towards the southern towpath, an area used both by boaters and the Trust’s volunteers.
He explained the plans, saying: "We plan to use the donation from Barratt Homes to pay for improvements to the southern towpath, which will make this area safer and more attractive for boaters and our volunteers."
He added: "This involves digging out, installing a new drainage system and back-filling with gravel.
"This work will increase our income from moorings, which is needed to fund costly silt removal and pile replacement."
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The Trust holds a canal festival in September, which regularly draws up to 5,000 people.
The festival features a floating market, stalls and other attractions.
The Barratt Foundation, run by Barratt Homes’ parent company, Barratt Developments, administers the Community Fund scheme.
It aims to support charities, both large and small, in the areas that they operate.
Mr Lacey added: "Local charities do so much unseen work to bind communities together and provide opportunities for people who get involved, with important physical and mental health benefits."
The Whitchurch Waterway Trust, founded in 1988, was initially created to reinstate the Whitchurch Arm, a portion of the Llangollen Canal that linked the waterway with the town centre.
Opening the first stretch of the canal in 1993, the Trust now owns and maintains the surrounding land.
Adrian Evans, managing director at Barratt Homes West Midlands, expressed pride in the donation.
He said: "We are proud to support the Whitchurch Waterway Trust.
"It has done great things for the community of Whitchurch, and we are excited to contribute to its continued work.
"One of the reasons why our customers are so attracted to our development is the beautiful community, which the Trust is helping to preserve."
The Trust operates near the Talbot Place development of Barratt Homes on Tilstock Road.
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