Work has begun to plant thousands of trees on 16 farms around the Ullswater valley.
A £220,000 grant from the Green Recovery Fund from Defra meant the project could go ahead. It involves the National Trust but is being led by local group the Ullswater Catchment Management CIC (community interest company - a not-for-profit organisation) which was formed after Storm Desmond to reduce flood risk and improve wildlife habitats.
Danny Teasdale from the CIC said: "With more and more focus on climate change and government targets on tree planting, we believe that it is vital to not lose sight that this is a working landscape with a long heritage of farming."
Wood pasture habitat is a diverse and ancient habitat characterised by a mixture of open grown trees with grazing grassland and other floras.
It is vital not only to the farming community but also wildlife as it creates shelter and grazing for livestock while also supporting numerous species.
Hedgerow habitat, having been in decline in the UK for many years, plays a major role in preventing soil loss, reduces pollution and helps to regulate water flows while providing a vital environment and corridor for wildlife.
Laura Ruxton, general manager for East & Central Lakes for the National Trust, said: "Danny and his team have been instrumental in delivering a variety of flood management and habitat creation projects on farms throughout Ullswater and are an important partner for the National Trust.
"Working together we can achieve so much more, to not only help improve flood resilience and habitats but also benefit the people who live, work and visit the Ullswater valley. This latest project will work with nature, and farming, to help better manage the future impact of climate change."
Ten thousand trees will be planted by the end of February with 38,000 in total planted over the next two years including eight kilometres of hedgerows.