The project, which will create at least 25 permanent jobs, will transform the Pump House building between Riverside Museum and the Hydro Arena.
Glasgow City Council has now approved the planning application for The Glasgow Distillery.
Work will begin after the Commonwealth Games and be finished by autumn next year, creating up to 300 construction jobs.
It is hoped The Glasgow Distillery will help the regeneration of a rundown part of the riverbank.
The Pump House building, currently owned by Clydeport, will be home to a whisky museum and interactive visitor centre.
Contemporary new buildings will contain a specialist whisky shop, cafe, whisky tasting bar and the single malt Scotch whisky distillery.
The project, which will celebrate the role whisky has played in shaping Glasgow and Scotland, has been developed by a small group of industry experts.
They are led by Tim Morrison, formerly of Morr-ison Bowmore Distillers and current proprietor of the AD Rattray Scotch Whisky Company.
He said: "The city was once home to many whisky distilleries and we think The Glasgow Distillery will put Glasgow right back on the Scotch whisky map.
"Few people know the historical significance of the iconic pump house building to the Scotch Whisky trade.
"In years gone by, this building controlled the entry bridge into the Queens Dock ensuring Customs and Excise could keep a close eye on goods in and out, including Scotch Whisky.
"My great grandfather John Morrison built the Pump House in 1877 and it gives me great pleasure to now have the opportunity to bring the building back to life, restore it to its former glory and give the building and the surrounding area the respect and status it deserves."
The firm of Morrison and Mason also built the City Chambers and General Post Office in George Square and Ruchill Hospital, among many other landmark buildings.
The Queens Dock closed in 1969 and was in-filled to create the Scottish Exhib-ition and Conference site.
Scotland has 108 working distilleries, which are visited by 1.3million people each year.