Mrs Sinclair's previous school, on the top floor of the Stavely Building in Jetty St, was destroyed in an arson attack on March 30, 2008, with the loss of 30 years of costumes, notes, music and materials.
The school moved to the Macandrew Intermediate School hall, while Mrs Sinclair continued her search for a more permanent location.
To the rescue came Dunedin school teacher Virginia Theis, the mother of one of Mrs Sinclair's former pupils, who bought the former Masonic Lodge in Shore St.
The building, renovated with the help of pupils' parents, will be leased to the ballet school on a permanent basis.
"She [Mrs Sinclair] has been such a wonderful teacher of so many young Dunedin people," Mrs Theis said yesterday.
"A whole community of people were determined to help her pull the phoenix from the ashes. It's quite amazing the community she has supporting her and it says a lot about her as a person."
Mrs Theis bought the building with an inheritance from her late father, Dunedin businessman Jim Wren, who operated the James Wren paint shops.
"It was the exact amount of the payout from the estate. Dad gave a lot to the community during his life and I could almost hear him saying: `Go for it'," she said.
Mrs Sinclair said a huge weight had been lifted from her shoulders.
"You cannot believe how happy I am," Mrs Sinclair said, as she surveyed the school, yesterday.
"It's just lovely seeing how excited the girls are about the new space. I really can't believe it ...
"It's a fantastic space, with two large studios, changing rooms and re-sanded and polyurethaned wooden floors. We've had a team of mums and dads working on it for weeks. It's just been amazing."
An official opening party will be held at the new Dunedin Ballet School at 7pm today to thank the community for its help. nigel.benson@odt.co.nz