Concrete wall slabs are being erected on the site, which will eventually house Plunket, a gymnasium, medical centre, committee and function rooms and office space.
A sports hall will have a sprung floor to host teams for sports including basketball and badminton and and a stage.
The building is the culmination of work in the community that began in the early 1990s.
A trust was set up to raise funds for a replacement for the ageing former hall - $700,000 was eventually collected - and last year the Dunedin City Council agreed to include $3.7 million in its annual plan to build the centre.
Project manager Kim Stewart said the work was on time and on budget, and the hall was expected to open next April.
"It's amazing. For 10 to 15 years we've been talking about it, and now we've got something tangible."
Council communications co-ordinator Rodney Bryant said the hall would put back into the community what centralisation of government services took away, and the offices could house visiting government agencies.
There was support from the University of Otago Medical School for the medical centre to be used for training rural doctors.
