The work is going ahead thanks to £55,000 funding secured on behalf of the Canal & River Trust by Cheshire East Council from developer contributions.
The project will see big improvements to the canal towpath between Bridge 89, Redstripes Bridge, and Bridge 90, at Green Lane where the steps accessing the canal will also be upgraded.
The improvements will ensure that the towpath, popular for cycling, walking and fishing, will be useable by the local community all year round. The works will also make it easier for boaters to stop and visit the town. The work is scheduled to last four to six weeks during which time some towpath restrictions will be in place.
Sarah Lalieu, enterprise manager at the Trust, said: "The canal system is a tranquil haven but this stretch of canal can get muddy making it difficult for people to walk along the canal.
"We know that being by the water can boost health and wellbeing so the work to improve the towpath will enable the locals to use this great local space all year round. We apologise for any inconvenience caused whilst the work takes place."
Councillor Ainsley Arnold, portfolio holder for planning and regeneration at Cheshire East Council, said: "We are delighted to be able to assist with the funding of this important project.
Members of the public should see a huge difference along the canal thanks to this investment."
The project is the next phase of improvements in Nantwich following the refurbishment of Nantwich Aqueduct and installation of new play equipment at nearby Marsh Lane.