The Scottish Fly-tipping Forum is to receive the cash for adverts and resources to help combat the crime.
Fly-tipping is an increasingly high-profile problem - one that is estimated to cost the UK up to £150m per year.
The Forum is tackling this with its Dumb Dumpers campaign, which promotes a hotline the public can call to report illegal waste disposal incidents.
Environment Minister Ross Finnie said: "The number of calls to the Forum's hotline confirms that the Scottish public is fed up with people illegally dumping their rubbish.
"This substantial funding further enforces our commitment to clean up Scotland's environment."
The Scottish Executive recently announced funding for two other projects that support the battle against fly-tipping.
It has awarded £110,000 to finance a further year of the Local Environment Audit and Management System, which measures local authority performance.
And it has promised £60,500 per year to allow Scottish participation in the Flycapture database that compiles information on illegal waste dumping incidents.
Westminster last week revealed plans to make fly-tipping an arrestable offence in a clause of the Clean Neighbourhoods Bill.