The funding will help reduce the costs of enforcing against unauthorised sites - it is estimated that this costs local authorities around £18 million a year.
In the South West £1 million of Gypsy and Traveller Sites Grant has been allocated to provide new sites, secure the continued use of an existing site and support refurbishment works on 2 sites.
Communities Minister Iain Wright said:
"The problem of unauthorised camping and the tensions it can cause will only be tackled through sufficient provision of well-managed, authorised sites, coupled with effective enforcement action. Site provision helps reduce the need for enforcement action - which costs taxpayers around £18 million a year - and makes it quicker and easier to take action where unauthorised camping does take place."
Schemes have been assessed by independent consultants and considered by Regional Assemblies. All proposals for new sites are subject to the full planning process.
The Homes and Communities Agency will be responsible for the Gypsy and Traveller Sites Grant for 2009/10 onwards.