The Oxford Flood Alleviation Scheme will receive about £416,000 to create a new stream with a wetland wildlife corridor.
The scheme protects the city and surrounding areas, which suffer from recurrent floods.
The EA said: “The scheme will reduce flood risk to all properties in Oxford currently at risk of flooding from the River Thames, as well as to the railway, local roads, utilities and services such as broadband.”
It said there would also be “additional environmental benefits”, including creating over 20 hectares of valuable new wetland habitat which would link up existing wildlife sites, and about 16 hectares of floodplain meadow.
The EA said over its lifetime, the scheme would save more than £1.6bn by reducing flood damage and disruption.
Elsewhere the Maidenhead, Windsor and Eton Flood Alleviation Scheme will receive funding, aiming to reduce flood risks in areas such as Datchet which have previously endured severe flooding.
On the Isle of Wight the Ventnor Coastal Defence scheme is working to modernise coastal defences on the south coast which has suffered from coastal erosion.
The Poole Bridge to Hunger Hill Flood Defence Scheme is aimed at reducing tidal flood risk in Poole town centre, the Old Town and surrounding area.