The DrugScope Millennium Awards Scheme is to distribute £1 million over the next two years to fund local community drug work.
The scheme, funded by the Millennium Commission, was launched last week following the success of pilot projects.
Grants of between £1,000 and £3,500 will be allocated to individual award winners to fund practical schemes that address any aspect of drug use or misuse. These could include developing drug-prevention initiatives or establishing community support groups for drug abusers.
Five hundred awards will be made during the three years of the project, which is supported by the Mentor Foundation and the Home Office Drugs Prevention Advisory Service.
DrugScope will collaborate with local networks that work with relevant groups to encourage people to apply for the scheme.
Roger Howard, chief executive of DrugScope, said: "Having seen the success of the projects already carried out in the pilot scheme, I know how they can empower individual award winners to realise their own potential, as well as help them make a difference to the community in which they live."