Gloucester is set to receive more than £2million as a reward for encouraging house building.
The £2.03million provisional grant is part of the government's New Homes Bonus scheme, which is allocated to local councils across the country.
Gloucester City Council will get the pay-out in monthly instalments over a year.
The funding is calculated on the number of new homes built in a local authority area each year, with an additional reward given for the delivery of affordable houses.
Elsewhere in the county, the Forest of Dean is set to receive £809,608 and Stroud £1.13million.
Forest of Dean District Council delivered 126 new affordable homes from 2011 to 2012. This followed on from 103 that were built the year before.
During the first half of the 2012 to 2013 financial year, 82 affordable homes have been delivered, with more in the pipeline.
Councillor Brian Robinson, cabinet member for efficient council and planning policy at the district council, said this was the most affordable housing built in the district for several decades.
He said: "As one of the top performing authorities for the delivery of new affordable housing, having delivered an affordable home every three days over the past 30 months, I am very pleased that our efforts have been rewarded with this amount of new homes bonus.
"Some of this will go towards delivering more affordable housing. The council remains committed to the delivery of new homes to meet local needs and we will continue to work closely with our housing providers in an effort to maintain our good progress."
The provisional allocations for 2013 to 2014 nationally are £661.4 million. This will bring the total amount of New Homes Bonus funding awarded since the grant was first paid in April 2011 to almost £1.3 billion.
The bonus is being paid after 142,000 homes and 13,000 long-term empty properties were brought back into use nationally in the last recorded year.
It also include the second affordable homes bonus, which totals £20.3 million in respect of 58,000 new affordable homes in the last recorded year.
Housing Minister Mark Prisk said: "For years, developers found themselves at loggerheads with communities unconvinced that their plans for growth would benefit them, but the New Homes Bonus is turning this around."
The grant is based on the amount of extra council tax revenue raised for new build homes, conversions and long-term empty homes brought back into use.
Local authorities have until January 7 to make their provisional allocations. Final allocations are due early February.