Lerwick, Kirkwall and Stromness will get new homes
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More than 200 new homes will be built in Orkney and Shetland after Communities Scotland unveiled a £8m funding package.
It announced spending of £5.5m on affordable housing in Orkney and £2.5m for Shetland.
It is aimed at enabling new homes to be built for rent or low cost ownership.
Communities Minister Malcolm Chisholm said: "This will make a huge difference for many people and their families to get decent homes they can afford."
The areas set to benefit will include Kirkwall, Stromness and Lerwick.
Communities Scotland is the Scottish Executive's housing and regeneration agency.
Communities Scotland's area director for the Highlands and Islands, David Nicol, said: "The budget represents an increase in funding and a significant increase in new homes.
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