A £1.2bn Cardiff Capital Region deal has been signed to improve public transport and bring economic growth over the next 20 years. It includes £734m for the south Wales Metro, bringing better rail and bus travel in the capital and valleys. It also involves 10 local councils and aims to bring 25,000 new jobs and an extra £4bn in private sector investment.
First Minister Carwyn Jones said it was a "vote of confidence in the region".
The announcement was made on the eve of Chancellor George Osborne's Budget and a year after he promised talks to set up the deal. He called the deal "fantastic" and said it would hand "real power to local decision makers that are best placed to ensure the Welsh economy is fit for the future".
City deals are a way of different levels of government financing big infrastructure projects and regeneration over long periods of time. The one agreed for the Cardiff region will run over 20 years - not the typical 30 years - which those behind it hope will mean funding will be delivered faster.
£1.2bn over 20 years
WHAT THE CITY DEAL INVOLVES
HOW THE DEAL STACKS UP