Two pumping stations and a flood storage area are to be built to prevent future flooding of the lower River Roding.
The river runs through Wanstead and Woodford Green and was placed on flood alert several times between December last year and February this year.
A flood strategy plan, put together by the Environment Agency (EA), Redbridge council and Thames Water, was presented to a Redbridge council meeting last week.
It includes the two pumping stations and the flood storage area in Chigwell Road, Woodford Green, which will cost around £3 million, with construction to be completed by 2016.
There will be a further flood storage area at Shonks Mill, north of the M25, reducing the river's flow. It will cost around £10 million, with construction to be completed in 2025.
Last year Redbridge council gave a financial commitment of £600,000 over three years to flood defences, and is promising more investment.
Redbridge Conservative councillor Paul Canal said: "These plans will ensure residents do not suffer from flooding. We remember the dreadful damage caused by flooding in 2000, and we don't want to see this again.
"It is fortunate we did not suffer this year, but we were close to another catastrophe.
"We will constantly invest money to protect our residents and homes against the threat of flooding."