In 1992, the partners of the Northern Reaches Restoration Group sponsored an engineering feasibility study that determined that restoration of the Northern Reaches between Tewitfield and Kendal to full cruising standard, was feasible (Scott Wilson Kirkpatrick 1992). The study was recently revisited to confirm and extend the findings of the original report and to update the estimated engineering costs (Scott Wilson Kirkpatrick 2000).

Following the completion of the engineering feasibility study, the Northern Reaches Restoration Group (1993) prepared a strategy for restoration of the canal. This included an examination of development opportunities, the economic benefits that may accrue from restoration, the ecological impacts, sources of finance, management issues and a programme of works.
The potential environmental, social and economic benefits and opportunities arising from the restoration of the Northern Reaches, and extension of the canal network as far as Windermere in the Lake District, were further explored by British Waterways in 2000 (British Waterways 2000c

In July 2002 the Northern Reaches Restoration Group commissioned ERM Planning and Consulting to undertake an Options Appraisal of the restoration of the Northern Reaches of the Lancaster Canal for the whole of the 14 mile length from Tewitfield to the original terminus in Kendal. The consultants examined a range of options for the restoration of the Canal, and estimated that the total cost of full restoration from Tewitfield to Kendal would cost between £54.6m and £62.4m. At the time this level of funding was unlikely to be forthcoming.

Not to be disheartened by these results, the LCRP Executive Committee with advice from the North West Development Agency decided that a three phased approach (see engineering page) would be adopted to restore the canal, starting with Phase One (Canal Head to the edge of Kendal). The restoration of the 1.5 miles from Kendal to Natland Road has the potential to be a catalyst for regeneration around Canal Head and the wider canal corridor, creating opportunities for businesses, jobs and leisure facilities to draw in additional tourists to the town. Phases Two (edge of Kendal to Crooklands) and Three (Crooklands to Tewitfield) will then provide benefits to the wider area.

This work has also been paralleled by works on the ground. The Lancaster Canal Trust, with assistance from the Waterway Recovery Group and other volunteers, have contributed to the improvement of several canal-side locations. Works have included access improvements to Hincaster Tunnel, repairs to Sedgwick Aqueduct, access improvements to Burton Road Aqueduct, access improvements to Old Hall Bridge, repairs to Tewitfield Locks, and dredging of one mile of canal at Crooklands. Kendal Civic Society with support from South Lakeland District Council and a grant from the Heritage Lottery Fund, has successfully restored Change Bridge and Natland Mill Bridge steps in Kendal. Please press here for images. Phases Two (edge of Kendal to Crooklands) and Three (Crooklands to Tewitfield) will then provide benefits to a much wider area potentially the north west region.