The Forestry Commission transformed two former landfill sites to establish the new community woodland called Town Lane.
The 26ha site was created over four months. It is hoped that a new cycle track, mountain bike skills course and wildlife habitats will be created.
The Northwest Regional Development Agency (NWDA) gave £1.78m to the project.
Town Lane is the latest community woodland from the Newlands partnership between the Forestry Commission and NWDA to regenerate the area's disused landfill sites.
Work on Town Lane has taken advantage of the raised ground height of the site by creating a scenic viewing platform looking out across the West Pennine Moors, Southport Mosses and Blackpool Tower.
The NWDA is providing resources to keep Town Lane maintained for the next 20 years and the Forestry Commission will manage the woodland it creates through the project for a further 79 years, making a secure period of nearly 100 years of management for the area's green space.
A number of local delivery partners, including Sefton Metropolitan Borough Council, Mersey Basin Campaign, Environment Agency, The Mersey Forest, BTCV and Groundwork Merseyside are also involved in the project.
Over £300,000 of additional funding has been secured from European Union Objective One Programme via the Mersey Forest Trust.
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