Donegal County Council is to commission a study into the strengths and weaknesses of Buncrana, ahead of the preparation of a new Local Area Plan.
The findings will also be used as the basis of future funding applications.
Tenders are now being invited from interested consultants who could carry out the study after the project got the green light from members of the Inishowen Municipal District.
The study is intended to define Buncrana's role within the North West City Region, with an emphasis on its relationship with Derry.
Cllr Rena Donaghey says it has the potential to be a very fruitful initiative: