Lower Marsh and The Cut in Waterloo have been selected to be part of the 'Portas pilot' programme set up to implement the recommendations of Mary Portas's review of British high streets.
Waterloo is one of 15 new Portas pilots announced by the Government on Wednesday, including three selected and funded by the Mayor of London.
Waterloo's town team plans to tackle the large number of empty shops, creating 'satellite markets' outside empty frontages and working with local landlords to provide training and get tenants into vacant buildings.
They also plan to continue the revitalisation of Lower Marsh street market, giving local students the chance to trial their designs on 'test days', giving local theatres the chance to perform in the area and encouraging schools to help young local entrepreneurs to set up stall.
"I am thrilled that communities up and down the country have looked beyond the money and have been mobilised to create 'town teams' and demand more for their high streets," said Mary Portas.
"Whilst I shall continue to fight for the other 27 'recommendations' in my review I am looking forward to seeing fifteen more British towns putting their plans into action."
Waterloo Quarter BID played a key part in the application for Portas pilot cash for the area.
Mayor of London Boris Johnson said: "Driving growth and creating jobs through the rejuvenation of London's high streets is at the heart of my mayoralty and the Portas pilot initiative is a fantastic way to help us achieve this.
"Through our regeneration drive we have already started reversing the decay of our high streets that had been allowed set in through long-term underinvestment.
"The selected pilots have been chosen for their innovative approach and commitment to community partnerships. We will work closely with them and ensure their successful ideas are replicated across other towns in London and the UK.
"I strongly believe the regeneration of high streets will help lead the way in steering our town centres out of recession and get these vital economic hubs booming again."