The city of New Haven said it will build a mile-long flood wall near Long Wharf.
City Engineer Giovanni Zinn said it will protect the transportation hub and commercial area from coastal flooding and sea level rise.
The plan is a partnership between the Army Corps of Engineers and the state Department of Energy and Environmental Protection.
The wall is estimated to cost about $130 million. Most of the money will come from federal and state funds.
A report by the Army Corps said that a flood wall could reduce damage to businesses and railroad property from flooding over the next 50 years.