The proposal is part of the British Waterways Bingley, Saltaire and Shipley Destination Delivery Plan, which could also see the return of a waterbus service stopped seven years ago between Shipley Wharf and Bingley Three Rise.

British Waterways wants to develop the waterway network as a leisure, recreation and tourism destination.

It has now been cleared for a first round application in December to the Heritage Lottery Fund for funding for the Bingley Five and Three Rise Interpretation project, which will cost an estimated £250,000.

Central to the bid is the reconstruction of Bingley Three Rise lock cottage, a building that existed on the site from 1850 until the late 1950s.

British Waterways wants to use the reconstructed building to explain the activities that went on at Bingley Five and Three Rise locks, which were once a bustling industrial site, as well as providing facilities for people visiting and using the site.

The regeneration manager at British Waterways Yorkshire, Graham Ramsden, said: "British Waterways is keen to promote and develop the waterway network as a leisure, recreation and tourism resource.

"The development of destinations is an important part of this process. A destination is a 'hot spot' on the network which can or does draw visitors and which has a heritage, environmental, leisure or tourism potential.

"The aim is to raise the quality of the visitor experience and keep it at this higher level thereafter. The section of the Leeds and Liverpool canal between Shipley and Bingley is proposed as a waterway destination."

The plan, which will be presented to Bradford Council's Shipley Area Committee on Wednesday, is the result of six months of work by various bodies including Bradford Council, British Waterways, the Airedale Partnership, the Leeds and Liverpool Canal Society, Salts Sports Association, the Riverside Court Residents' Association, Saltaire Village Society and Craven Cruising Club.

The plan proposes a three-year period to carry out improvements by all members of the stakeholder group.

It also includes the possibility of reinstating a waterbus service.

Mr Ramsden said: "Previously, a waterbus service ran between Shipley Wharf and Bingley Three Rise. Stops were located at Bingley town centre (adjacent to Damart), the Fisherman's Inn at Dowley Gap, Hirst Lock, Saltaire and Shipley Wharf. There was also a stop at Gallows Bridge.

"The service was stopped in 2001 but there is the possibility of reinstating the waterbus, either as a scheduled service or to run on demand."

The plan includes improving signage and information boards along the canal and could see the creation of a heritage centre in Shipley to illustrate the history of the Leeds Liverpool canal.

Additional moorings above Five Rise Locks are being considered to encourage more boaters to overnight at Bingley, as are new overnight moorings at Saltaire, possibly near Salts Sports Club.

Other possible developments include increased visitor moorings at Shipley Wharf and removing a fence obstructing access to benches outside the Ibis Hotel in Shipley.

The canal towpath could also be incorporated into a recognised safe routes for schoolchildren through working with schools in the area.

Children could also learn about the heritage of the area through a package for schools.