As part of a 20-year action plan created in response to the 2013 floods, the SRA will receive a total of £2.7m in funding with the aim to reduce flood risk in Somerset.
The Authority will give local people more control over managing flood risks in the area and is due to be established by the end of January 2015.
Defra have agreed to provide £1.9m whilst the Council will provide £600,000. The Somerset Consortium of Drainage and the county’s five district councils will also provide £200,000 for the first year.
Earlier this month, the government announced its National Infrastructure Plan that set out plans to invest in flood defences as part of a wider infrastructure investment.
Councillor John Osman, chairman of the Flood Action Plan Leaders Implementation Group and leader of Somerset County Council, said: “The creation of the Somerset Rivers Authority is the result of intensive work and close co-operation between partners, with a strong determination on everybody’s part to make this happen so that we can better protect our county from the impact of flooding.”