The 105-year-old Italian marble fountain, a gift to Oamaru by timber merchant James Craig in 1912, failed in the 1990s and was dismantled in March last year.
A Waitaki District Council vote in September to increase the budget by $90,000 allowed the restoration to go ahead. The expected cost is $165,000.
Waitaki Mayor Gary Kircher said the project had progressed well so far, and he looked forward to seeing the fountain returned to its ''former glory''.
Parts of the main structure had been installed into the foundation, as had power cables for the path lighting that was planned to follow.
A pair of drinking fountains, which also dated back to 1912, would be reinstalled.
The fountain itself will be bathed in light as part of a fundraising initiative being spearheaded by the Rotary Club of Oamaru.
The club is seeking donations to help pay for the installation of an LED lighting system, expected to cost about $10,000.
Mr Kircher said he was grateful the club had given its support and said the fountain, once complete, would look ''fantastic'' at night.
Some people, mostly through social media, had questioned the need for the fountain and path lighting, given the gardens were closed to the public at dusk.
In response, Mr Kircher said a plan was in place to ensure the public could enjoy the light show.
''People have asked why we are doing that when the gardens got closed at dusk. The intention is to have the gardens left open later in the evening so people can appreciate the lights there.''
He said the project was being financed through bequests and ''special funding''.
-From the Oamaru Mail
