The mayor of Venice and 35 other people have been arrested in a corruption investigation related to the construction of underwater barriers to protect the historic city from flooding.

Italian financial police confirmed mayor Giorgio Orsoni's arrest today but gave no further details.

Orsoni is being investigated for corruption, extortion and money laundering.

The arrests were the result of a three-year investigation by the financial police that led to the arrest last summer of the head of the consortium building the ambitious but long-delayed system of so-called Moses barriers.

Authorities say 20 million euros was diverted abroad for bribing politicians.

The first of the underwater barriers was installed last year.

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