The funding, announced yesterday, means the Central Otago Sports Turf Trust, responsible for the push for the water turf, is almost halfway towards the $1.724 million required for the turf and amenities.
It will replace the ageing, sand-based turf next to Barry Ave which was built in 1996.
Last year, the turf trust was advised by the sand turf's manufacturers it was nearly worn out, despite repairs.
Trust chairman Michael Paardekooper said the cost of the new turf would also include changing rooms, toilets, showers, storage, a meeting room, kitchen and a first-aid room, as well as a small warm-up turf.
''We are absolutely delighted to get the equivalent of almost 50% of the funding.
''It's a major step forward.''
Further funding would come from fundraising in the hockey fraternity, and another trust would be approached.
The Cromwell Community Board had also committed $150,000, Mr Paardekooper said.
It was planned to begin construction at the end of the hockey season next year, funds allowing.
It was expected to be completed in March 2016.
New facilities at the turf would make the town more attractive for hosting tournaments, he said.
New Zealand Hockey required all tournaments to be played on a water turf.
At present the ''headquarters'' for hockey in Central Otago, the turf catered for about 650 registered players.
Cromwell Community Board chairman Neil Gillespie said the funding was ''fantastic'' news and a great step forward for Cromwell and Central Otago.
''It's great to bring it [the turf] up to a modern standard and it's going to really help people to come and play in those tournaments they can now host.
Other grants totalling almost $1.5 million approved by the Central Lakes Trust this month included Cromwell Bike Park, $200,000; Shotover Primary School, $175,000; Sport Otago, $50,602 and $50,000; Central Otago REAP, $41,500; St John Wakatipu, $30,000; Cromwell Bowling Club, $20,000; Cromwell Lions Club Charitable Trust, $17,920; Heartland Life Education Trust, $20,000.leith.huffadine@odt.co.nz
