The Local Democracy, Economic Development and Construction Bill announced in the Queen's Speech is intended to improve the cash flow and adjudication of construction contracts.
The Bill is one of the few likely to have much effect on regeneration in a legislative programme which aims to protect the economy against the gathering slump.
It will also impose a duty on English regional development agencies and local authorities to create local authority leaders' fora to produce the new regional strategy after local authority regional assemblies are scrapped.
"The Bill will strengthen local democracy," said Downing Street.
The Campaign to Protect Rural England said the Bill would be a crucial test of the Government's green credentials.
Also included is a Business Rate Supplements Bill, published on 4 December, which will enable upper tier local authorities in England and Wales to levy a supplement up to 2p on the business rate to promote local economic development.
The British Property Federation welcomed the Bill but warned it could hit funding for business improvement districts.
Also included in the Speech was the Marine and Coastal Access Bill which will set up a marine management organisation in England and extend planning powers into the sea.
But the expected Heritage Protection Bill promised in the draft legislative programme last May failed to make it into the programme.
