Lancaster, Barrow and South Lakeland councils have pledged to work together more closely to attract greater investment and employment into the Morecambe Bay area.
Bosses say the new partnership will enable more effective economic development activity and bring fresh opportunities.
The first step towards collaboration has already been taken with the leaders of each council signing a Joint Statement of Intent to work together on economic development opportunities.
Cllr Eileen Blamire, Leader of Lancaster City Council, said: “Stronger collaboration around Morecambe Bay provides potential strategic advantages for all three councils and the communities we serve.
“District and county administrative boundaries serve a purpose in terms of public administration but do not necessarily define the economy, which develops around key sectors, supply chains and markets, as well as people and skills.”
Barrow Borough Council’s Leader, Cllr Dave Pidduck, said: “This council has recognised the need to build strong alliances and partnerships to lobby for the area at a regional and national level.
“Our partnership around Morecambe Bay is a key step towards that. All three local authority areas have unique strengths and will benefit from a collaborative approach to new employment, infrastructure and skills.
“With key strengths in industry, environment and learning Morecambe Bay will become a significant regional economic voice.”