Grantham Civic Society applied to digitise over 1,000 photographs and slides of the town, run workshops to identify the images and document their subsequent social history.
They include photos and artefacts over three centuries to bring to life the town's development and how it has changed.
It was welcomed by Executive Members Cllr Nick Craft and Cllr Linda Wootten and ward councillor Cllr Ian Selby as they met the group to look into the fascinating items which date back as far as the 1800s.
SKDC's Leader and Executive Member for Growth Cllr Bob Adams said: "The depth and knowledge of the local area as a result of this exercise is incredible.
"We're very pleased the Community Fund has assisted a project that will be part of the key libraries of the town's history going forward."
Grantham Civic Society Treasurer Ruth Crook said the response to their workshop appeal was excellent and has meant many previously unseen images have come to light.
She said: "The enthusiasm of people at the workshops was wonderful and highlighted how important social history and word of mouth on certain sites, buildings and roads that no longer exist in Grantham was to document.
"We thank the Community Fund for the opportunity to host these sessions and gain an insight to the town we did not have before."
Lincolnshire Community and Voluntary Service administers the Community Fund on behalf of the council. Applications are judged on criteria that seeks to support community projects or events which demonstrate wide community benefit.
Applicants can apply for funding to improve community amenities or buildings and can also support community enterprise. A maximum of 80 per cent of the total cost of projects can be applied for. Applications of between £500 and £10,000 are allowed within this funding stream.
The Fund can also support community celebrations, sports events, street festivals, arts and cultural events. Again, up to a 80 per cent of the project costs is the threshold for those wishing to apply for between £200 and £5,000.
Groups or individuals can apply for grants by downloading an application form at www.lincolnshirecvs.org.uk