The scheme could start as soon as this year, tourist leaders have been told.
The proposals have been out for public consultation and if there are too many objections officials have warned the cash could be lost.
Teignbridge Council and Representatives from the Environment Agency told members of Dawlish Warren Tourism that as soon as the scheme gained support, initial work could start later this year, with the entire project completed by Easter 2015.
Money has been made available for the scheme but on condition it is completed by March 2015.