Blackburn with Darwen Council and Blackpool Borough Council are to share £1m to improve management of streetlights, bridges, roads and other transport assets.
Blackpool will receive £600,000 and Blackburn £400,000 after successfully bidding against other local authorities in the UK for the central Government money from a fund for innovative projects. Both councils will use the cash to increase the information held about their transport assets.
Transport minister Paul Clark said: "High-quality local highways are vital to communities; connecting people with work, shops, services, family and friends.
"That is why we have awarded this funding to those councils whose projects will most add to our knowledge of how best to manage these crucial networks."