Wales is to get more say over energy and transport policy, as well as and greater control over the way its Assembly is run.
The new Draft Wales Bill, published on Tuesday, sets out which powers will be kept at Westminster and which will be transferred to Cardiff Bay.
More powers are being offered to Wales over large energy projects, such as decisions over fracking. Wales would also be able to set road speed limits.
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The Assembly would have more power to run its own affairs, including setting to voting age for elections, and the right to call itself a parliament.
Welsh secretary Stephen Crabb said the bill would "meet the appetite for devolution and build a stronger Wales within a strong United Kingdom".
“It's time we had a robust devolution settlement that works for the people of Wales," he added.
The draft bill is open to consultation before a final version is published in February. It follows a promise from David Cameron and Nick Clegg in February when they set out the St David’s Day commitments to create a “stronger, clearer and fairer” devolution settlement for Wales.