CTOS chief executive John Prendergast, of Invercargill, made the announcement last night at a function at Amisfield Winery. It takes the trust's commitment to the establishment of the trail to $1 million.
Wakatipu trust chief executive Kaye Parker said the extra funding meant the "green light for construction" of the Queenstown Trail.
"A tender for the first section of the trail, known as the Twin Rivers Trail, leading from the old Shotover Bridge to Morven Ferry, has been let and work will start immediately.
"With the [CTOS'] latest round of funding, we are in a position to spearhead the complete trail, with a deadline for the opening by Prime Minister John Key scheduled for September 2012."
Wakatipu trust chairman Terry Stevens paid tribute to the community trust for its "outstanding vote of confidence in the Queenstown Trail".
"We are excited about the endorsement and backing we are receiving for our new trail and this generous grant is further recognition of the high regard the Queenstown area is held in.
"Coupled with the Central Lakes Trust $1 million grant, the Government grant of $1.8 million and other grants and donations the [trails trust] now has around $600,000 left to raise from the community."
Mr Prendergast said there had been significant support from the trustees for the Wakatipu trail network for many years.
"Prior to our funding of the Queenstown Trail we have provided around $950,000 for work in the area, including the Gibbston Trail and the restoration of the old Shotover Bridge.
"This takes our contribution to almost $2 million which reflects our commitment to the development of the trail network and to the Wakatipu community."
This year the CTOS received more than 30 applications, requesting a total of $20 million, and had just $3 million to spend, he said.
"We had to figure out which one was a priority application - this one was the priority application."
Taking into account the past support for trails around the Wakatipu, Mr Prendergast said the trustees were "very clear" they wanted to help finish off the project.
"It is support over four years, but we've made the commitment now.
"The community has got a proven ability to get behind good projects and raise money themselves for it and that certainly helped ... The other factor is Kaye Parker.
"She's got a proven track record, she's been to see us before ... and we know Kaye has the ability to galvanise a community fund-raising."
Mr Prendergast said while the Queenstown Trail would attract many international visitors, the community trust was just as focused on contributing funds to the trail for the benefit of the Wakatipu community.
Mrs Parker acknowledged the Wakatipu landowners who had provided easements to allow the Queenstown Trail to cross their properties.
"I would like to publicly recognise their support because they are the true heroes of this project."
Wilson Contractors had already started work on the first section of the new trails network, which should be complete by February, Mrs Parker said.
At a glance
• A 90km trail network linking Jacks Point, Queenstown Bay, Lake Hayes Estate, Arrowtown and Gibbston.
• 33km of that is already in place, with 57km to be constructed.
• A deadline of completion for the entire network has been set for September 2012.
• The trail will include seven bridges and two underpasses - one under State Highway 6, at Swiftburn, the other on a deer farm.
• A further 24km - the Gibbston Back Road Trail - has been earmarked for development along with the Upper Kawarau Trail, at Frankton, which is on hold until tenders are received.
