Work to take down the former Wigan Pier nightclub started this week to allow for a new community garden and the redevelopment of the surrounding area.
Wigan Council bought the vacant building in March 2013 after it said it became an eyesore for the town.
Plans to transform the area around Wigan Pier are currently being considered by the council. The nightclub site will initially be restored as a community garden but wider proposals include landscaping the land around the pier and making use of the canal basin as a marina for overnight mooring. Plans will be finalised in the coming months.
Cllr David Molyneux, deputy leader of Wigan Council, said: "This is one of the biggest eyesores in our town and sadly it is in one of the most high-profile places. The building is about 40 years old and I'm sure there are a lot of people who have happy and slightly hazy memories of good times at the old club.
"But the building is now in a rotten state. We are currently underusing and underselling the whole Wigan Pier area and want to completely transform it and restore its status as one of the most prominent places in the region. That can only really be done if we get rid of this building. I'm pleased work to achieve this will begin soon. It's a great start for 2014."
The inside of the club has already been cleared and demolition work is expected to be completed by contractor B&J Metals in a couple of weeks.
Originally a Victorian storehouse, the building was remodelled and turned into a nightclub. It became a key part of the North West's music scene and was famous for rave and house music. During its peak in the mid-1990s, it was regularly pulling in 800 customers every Friday and Saturday night. But the building has stood empty for more than 12 months.