Maghull Town Council Labour Councillor Steve Kermode got the backing of the Labour Group to honour community stalwart Bill Dwyer.
Cllr Kermode proposed a fund to pay for community clean ups, in honour of Bill, who died suddenly last month.
The proposal was passed unanimously by the Labour councillors on Maghull Town Council.
On the night before he died, Bill had been at the first meeting of the new Campaign Alliance for the Protection of the Environment group.
Cllr Kermode said: "Bill did a lot for the community of Maghull and Lydiate and Maghull Town Council Labour Group felt that we should commemorate him.
"He worked tirelessly for the area through his various activities, including Maghull in Bloom and as the founding father of the canalside clean up campaign.
"We have lost a real community champion, but through Maghull Town Council's special Bill Dwyer fund and through his lasting legacy with the canal volunteers, Bill's community spirit will live on."
Cllr Kermode said he was delighted that Bill would be remembered through the ongoing community work in his name.
Cllr Kermode added: "Bill really was tireless in his campaigning work for Maghull and Lydiate.
"Just the week before he died he spoke to me and the council about a number of campaigns and issues which he wanted to work with us on to address.
"Even the night before he died he was at the CAPE meeting proving that he had this community at heart right up to the end.
"Maghull Town Council's Bill Dwyer fund and the improvements that we see through it, will be a fitting tribute to a great man of Maghull."