The consented project stalled last year after a constant, long-term supply of water to feed the feature could not be secured from the springs on Lakeside Rd.
The Wanaka Springs Trust had been fundraising since 2007 for a permanent water feature in an area of Roys Bay between the dinosaur playground and the Wanaka marina.
The Wanakafest Community Trust agreed to help fund the project with money raised during its Stonewood Homes house build in 2009.
Brent Harridge, who has been leading the project on behalf of both trusts, recently asked Lakeside Rd landowners to come forward if they could offer a solution to the water shortage issue, which netted a positive response.
Lakeshore Springs Villas developer Danny Logue, of Auckland, had originally offered a water source from his site when the project was first mooted.
"When they went to dig up [last year] and get that water source, there was nothing there," Mr Logue said.
"The original source that we were going to use had basically dried up, but we've found another source that we can utilise on the site."
The development of Lakeshore Springs had included a provisional water supply to maintain the levels of a trout pond on the neighbouring Panorama Court property.
After reading an Otago Daily Times article outlining the trusts' need for water, the managers of Panorama Court, Bruce and Jen Kewish, drew Mr Logue's attention to an "overabundance" of water which could meet the project's needs.
"The original springs that were feeding the trout pond, a lot of that's come back, so they [Panorama Court] don't need to use as much as what's been allocated," Mr Logue said.
Mr Harridge said with a water source now assigned, the only remaining "stumbling block" was getting additional funding for the installation of another pipe under the road from the new supply. "We're hoping the council might come on board with that."
The other option was to run the water about 35m down the road to the existing conduit which was installed to deliver water from the original water source.
"We want to press the go button on actually starting building the project as soon as possible and we'll sort out how we get the water there in conjunction with that," Mr Harridge said.
