Four large floodgates rose out of the water creating a temporary sea barrier.
Once completed, 78 mobile flood barriers will be raised from the seabed to shut off the lagoon in the event of rising sea levels and winter storms.
Venice suffers flooding on a yearly basis. In 1966, 80% of the city was flooded by high tides.
Construction on the barriers began 10 years ago but has been hampered by delays in funding due to Italy’s economic crisis.
The Moses project has already cost more than $7 billion and is not expected to be completed for another two years.
Once finished, the floodgates will extend more than a mile, blocking the three inlets to the lagoon.
A government minister has promised funds to complete the scheme on time in 2016.
But the head of the construction consortium said they would need $800 million immediately, otherwise the jobs of some 4,000 construction workers would be at risk.
In 1966, some 5,000 people were left homeless when flood levels in the city reached 6ft causing immense damage.
Earlier this week, Venice saw its first high tide of the season, known as “acqua alta”.
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