Council chiefs say the money will enhance drug treatment schemes that target people leaving prison who may be at risk of drugs-related crime.
Nottinghamshire has a death rate from drug misuse of around 2.7 per 100,000 population.
The funding has been welcomed by Mansfield MP and Nottinghamshire County Council leader, Ben Bradley.
He said: “I’m pleased that Nottinghamshire will be receiving more than £800,000 to fund substance misuse interventions and I know that this funding will be warmly welcomed by my constituents across Mansfield and Warsop.
“This is the biggest increase in drug treatment funding for 15 years and will have a positive impact on Nottinghamshire.
"It’s vital that we get to the heart of the issue and first tackle substance misuse. Drug related crime has been a big concern for my constituents so I’m pleased that Government is addressing their concerns.”
Coun Boyd Elliott, chairman of adult social care and public health committee, said the cash ‘will make a huge difference’ to communities across Nottinghamshire.
He said: “Drugs misuse destroys lives. This money will make a huge difference to the lives of those who need the treatments and in turn will benefit the community through a reduction in associated crime rates.
“This is a new approach and we will be working with criminal justice agencies such as Nottinghamshire Police and the Probation Service to identify people who may need support.
"By being proactive and supporting people coming out of prison and into the community, we hope this will in turn have a positive impact on reducing local crime figures.”