Edmonton's river valley may soon have a new feature that could attract more tourists to the area.

The city has given approval to a plan that would see a funicular built to connect the downtown to the water front.

"One of the challenges we faced for years and years is how to get people from the top of the valley to the bottom. But more importantly from the bottom to the top," Mayor Stephen Mandel said.

The project would centre around the old Epcor power plant.

Councillors have been looking at making the property a landmark tourist destination. A funicular – a cable railway system – may help the project move to the next level.

"I think you'll see recommendations soon about what could go in there," Ward 8 Coun. Ben Henderson said.

"Also the idea for the space in the old plant that has been torn down is probably some kind of a park or plaza. I think is the most likely," Henderson added.

Councillors and the River Valley Alliance are working on developing the project. It is estimated to cost about $25 million.

The chair of the River Valley Alliance said the money for the funicular would come out of funding the Alliance has set aside.

"That $110 million includes the $50 million that we've received from the province, $30 million that will be coming from the federal government. The other 30 is the composite that will be coming from the other municipalities putting in their share," Solomon Rolingher explained.

The City has until the end of the month to present its application to the federal and provincial governments. If approved, Mandel said it would increase traffic to the city.

"It'd be a tourist attraction. A huge tourist attraction."

With files by Ashley Molnar