Keswick could get a bumper payout as compensation for the traffic chaos and disruption caused by the massive United Utilities pipe project.

The town f aces upto two years of disturbance as part of the £300 million pound scheme to pump water from Thirlmere to west Cumbria.

It has already caused major traffic problems in and around the town . T he pipeline work closed a major section of the A591 from Bothel to Underskiddaw on October 30 and is expected to last until December 9.

And worse is to come when a tunnel is dug in Keswick underneath the River Greta at Penrith Road nearthe Royal Mail sorting office.

Another tunnel, some 1.3-kilometre in length is also planned to be constructed at Castlerigg,

A spokeswoman for United Utilities said: “From the outset of the project we said we were keen to give something back to the communities which would be affected along the route of the pipeline.

“We’ve been in discussion with Cumbria Community Foundation about a legacy fund and we’re just in the process of finalising the details about the size of the grants that will be available and the kind of groups that will be eligible to apply.

“As soon as this has been agreed, we will publicise the details and we hope to see a lot of applications from good causes.”

Andy Beeforth, the chief executive of the Community Foundation, said the organisation was still waiting to receive details from United Utilities.

T he Legacy Fund was due to have started last May but it now due to be launched this month.

T he first applications for grants will be accepted from December from what is described as a “sizeable pot.”

Roy Johnson , chairman of the Keswick Retail Traders group, said: