The Stamp End Flood Alleviation Scheme is designed to protect up to 119 homes from the River Witham.
The scheme provides flood resistance to the residential area at Stamp End with a low flood barrier, while a new pump station has also been installed to alleviate pressure at times of heavy rainfall.
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Overall, the development aims to prevent a repeat of the damage caused to homes and local businesses during adverse weather in 2007.
Cllr Colin Davie said: "I'm proud this project has been completed and residents can rest easy in the knowledge they're protected from flooding.
"The project is an example of excellent partnership working involving the County Council, City Council, Environment Agency and Anglian Water, as well as numerous local businesses who contributed in kind to get this fantastic scheme completed."
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(LM)
