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The Community Trust of Southland has given Glenorchy $15,000 towards its 2012 celebration of 150 years of European settlement in Glenorchy, 100 years of the district's old lifeline TSS Earnslaw and 50 years of the Queenstown-Glenorchy road.
The community had identified key projects to mark the occasion, which will be officially celebrated at Labour Weekend.
Glenorchy Heritage Museum Group spokeswoman Elaine Kirkland said the group would meet next weekend to discuss details of the weekend and how the money would be spent.
Mrs Kirkland said the majority of the donation would go towards the community's plan to restore the library and produce a DVD about the construction of the Glenorchy road.
"Many of those involved are now elderly and it is important to capture their stories on how such a major development was achieved."
She said the trust's support meant plans could now be put into action.
"It's quite a significant contribution towards the total cost. We should begin both the library and DVD projects early in the New Year."
Community Trust of Southland chief executive John Prendergast said the trust wanted the town's history recognised and celebrated.
"For such a small community, its willingness to work hard and get the job done has been and still is something to be acknowledged."
More than 400 people expected to attend the weekend's celebrations.
"We have no idea how many will show up on the day, of course, but we are expecting over 400, as we've had many past and present residents interested in the day."
Earnslaw will visit the town on the Sunday and a giant picnic will be held on Labour Day.