Gayle Mill has received a £2,500 grant from the sustainable development fund towards work to reopen the historic building to the public.
The grant will support conservation work at the mill.
The grant has specifically helped towards works on and around the headrace and preparing Covid-safe access.
Graham Bell, director of owners Cultura Trust, said: “The sustainable development fund grant is a much appreciated means of support from the Yorkshire Dales National Park Authority, with whom Cultura has worked for almost 25 years.
“Revival of the water power system for operational purposes was extremely rare when we began in the 1990s.
“Now, many people are aware of climate issues and want to help, so Gayle Mill is updating its role, where history and sustainability work hand-in-hand.”
Stuart Parsons, from Gayle Mill, said: “Mills have been at the heart of communities for centuries; they have literally been the bread of life and engines of rural economies.
“Gayle Mill has moved with the times in four successive centuries, which is a pretty good definition of sustainable development.”
Member champion for sustainable development at the Yorkshire Dales National Park Authority, Carl Lis, said: “The Sustainable Development Fund supports local initiatives that help conserve cultural heritage.
“Gayle Mill has always used a locally available resource – the water in the beck – to create power.
“Today we would now describe that as sustainable.
“For generations it was a way of life that literally came naturally. We are pleased this grant has helped Gayle Mill to keep that tradition alive.”