Port Otago will build three rock groynes at Te Rauone Beach and sand will be deposited at the northern end to restore about 300m of coastline.
The Dunedin City Council will also create a new car park and upgrade the playground at Te Rauone Beach Reserve.
Te Rauone Beach Coast Care Committee member Des Smith said he was thrilled the port had been granted resource consents by the city council and Otago Regional Council for the beach-restoration work.
He was especially pleased for committee chairman Graeme Burns and the committee, "who have worked so hard over a long period of time".
The beach will become one of the few remaining sandy beaches on the western side of the peninsula.
Port Otago and the committee had worked on the proposal for about 10 years.
The city council and Otago Peninsula Community Board were involved and Te Runanga o Otakou submitted in support of the proposal.
A celebratory function is to be held next week.
The groynes will extend about 80m from the shoreline and are intended to maintain sand imported for what has been called beach renourishment.
The northern groyne will connect to an unconsented seawall that will be partly reconstructed.
The central groyne will have a walk-through access to allow people to walk between two beaches at low tide.
A boardwalk will be built around the inland end of the southern groyne.
The applications for consent generated 383 submissions in support, two in opposition and one neutral.
The Department of Conservation ended up dropping its opposition after concerns were resolved.
A public hearing was held on December 15, consent was granted two days later and then the appeal period passed with no objections.
In his decision, hearing commissioner Rob van Voorthuysen said re-establishing the beach would be consistent with the beach’s natural condition before it had been eroded.
Local amenity values would be enhanced significantly, he said.
Work on the groynes and sand deposition is expected to start this year.
Port Otago chief executive Kevin Winders said a long-term vision was coming to fruition.
"It benefits the continued good health of our harbour and the community can once again enjoy an amenity beach on their doorstep," Mr Winders said.
Dunedin City Council city services acting general manager Robert West said some of the council’s work, such as weed control and planting vegetation, would benefit wildlife, as well as enhancing the destination for visitors.
Mr Smith said he was looking forward to the first rocks being installed for the groynes.
"Once construction is complete, it will be exciting to see the sand being placed on to the beach.
"I plan to be down there with my shoes off, testing it out alongside the rest of our delighted community," Mr Smith said.
