The Pumping Station Allotments on Goldthorn Hill had lain dormant and overgrown until volunteers began work to make the site safe for use.
Overlooked by the historic pumping station, it has been cleared of tons of debris by the Pumping Station Allotments Group, with MWH Water Treatment building a wall and gate to secure the site.
Blakenhall councillors Dr Paul Birch and Jasbinder Dehar also provided the allotments group with £1,500 from their ward funds to help bring them back into use.
They were present alongside members of the group, Wolverhampton Council and MWH Water Treatment at the grand reopening, with Wolverhampton South East MP Pat McFadden cutting the ribbon and declaring the site open.
Mr McFadden said: "This wouldn't have happened without the initiative of local residents and it will help bring life back to the pump house, which is a famous part of the city.
"It's a shame this has all been fallow for so long, but better late than never to bring a bit of life to this part of the city."
Councillor Birch thanked Mr McFadden for coming to officially open the site and spoke of what the benefits would be for the community. He said: "It will be really good for mental health within the community in terms of making friendships and helping to develop the land.
"It's not good to just sit around and be idle and do nothing and it helps to have a site that they could have easily built flats on for people to come and enjoy green spaces instead."
Lee Pooley, from MWH, had worked with Severn Trent to get two bore holes filled in on site and said: "It means a lot for my company to be involved and this fits in with our 200th year and the 200 acts of kindness that we are doing to help community projects."