The town's existing pool was badly damaged in a fire earlier this year.
A new Offaly swimming pool project is being allocated an additional €2 million.
Edenderry's pool has been closed since January after a fire badly damaged the facility.
Sports Minister Catherine Martin has today approved the reallocation of €2 million, on top of an existing grant worth €3.8 million, for the development of a new pool in the town.
Fianna Fáil Councillor, Claire Murray Smale, says Edenderry needs a swimming facility:
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