A £1.3m package of improvements to a village's sewerage system could prevent repeated problems of flooding. Carlin How, near Skinningrove, has suffered continued flooding - mainly along the A174 running through the village.
Northumbrian Water said it is preparing to spend nearly £1.3m on the sewerage system, which ranks as the seventh worst for flooding in its area.
Newly-formed residents' group Carlin How Against Neglected General Environments (Change) met Northumbrian Water and Redcar and Cleveland Borough Council to find the cause of the flooding.
They were told that the main problem was that the sewers are not large enough to cope.
The problem has been made worse by the fact that some streams have been diverted into the system, while culverts running around the village have, at some point, been filled in.
Northumbrian Water plans to take the highway drainage from the A174 away from the village, along with land run-offs.
This involves relaying the sewer, and replacing it with a bigger capacity system.
Andrew Panting, head of communications for North-umbrian Water, said: "This is a major scheme and is going to mean a very substantial period of construction, but it will be worth it in the long run."
It has also emerged that the filled in culvert comes out at the Corus Skinningrove plant, which lies in the middle of Carlin How.
So far, Corus has refused to unblock the culvert, and the local authority is taking legal action against the steel firm.
Villagers are planning a protest at the plant if the company does not sort the problem.
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