Lindsay Rimer, 13, was last seen on November 7 1994 when she went to buy corn flakes from a local shop.
After months of searching, her remains were found the following April, in the Rochddale Canal.
A new appeal for information on what happened to her had been launched just last week.
Today, police said a 63-year-old man from Bradford had been arrested on suspicion of her murder.
He is currently being questioned by detectives in police custody.
Last week, Lindsay’s mother Geri Rimer said: “It will be 22 years that we have been making these appeals, 22 years of complete anguish and heartbreak and still nobody has come forward.
“I know that the answer to this is in Hebden Bridge and somebody knows what happened to my daughter and I am begging them, begging them, just to come forward and tell us what happened to her.”
In recent years detectives have reviewed previous suspects and conducted interviews with potential witnesses from the 1990s.
West Yorkshire Police has been working alongside forensic experts in Canada and Germany in the hope it will shed new light on evidence gathered from the crime scene.