Pub operator JD Wetherspoon has spent the past four months building The Bishop's Mill, Walkergate, Durham City.
A total of 55 full and part time jobs are being created at the pub, opening on Monday. It takes its name from the site of a nearby mill which was owned by the ruling bishops many centuries ago.
The non-smoking premises has a dance floor and a DJ will play music at weekends.
Manager Lee Roberts said: "I am looking forward to welcoming customers. They will be impressed with the transformation of the building and it will be a good addition to Durham's social scene."