The regulator OFCOM has awarded a second round of local TV licences - one of which will operate in Cardiff.
Made TV Ltd was chosen over one other bidder to run the service, which the company says will operate from 2013. It has also been awarded the licence to operate in Bristol.
The Cardiff channel will operate under the name 'Made in Cardiff', and will broadcast on digital terrestrial TV.
More top news
A mostly cloudy and murky day with widespread hill fog and outbreaks of rain.
Official figures show areas of Caerphilly, Rhyl, Wrexham, Rhondda Cynon Taf and Bridgend to be the most deprived in Wales.
A £500 million investment has been secured for a new riverside development in Cardiff, which would link the City Centre with Cardiff Bay.