The work to revitalise the three-mile stretch of the towpath will last around 14 weeks. Diversions will be in place along parts of the towpath while the works take place.
Canal & River Trust enterprise manager Nick Smith said: “This is a fantastic project that will improve the towpath no end. The canal is a haven, a brilliant, tranquil place to be and the enhancements will be a real boost for all the walkers, runners, boaters and anglers who use it."
Councillor Simon Myers, lead member for Enterprising Craven, said: “I'm delighted this project is getting underway. It will improve links for residents and will benefit cyclists and walkers who struggle to use this stretch of the canal at present when it is wet and muddy.
“It will also link Skipton town centre with Snaygill Industrial Estate, the largest employment site in the Craven district. We look forward to providing a better environment for residents and visitors alike.”