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The project has been more than 10 years in the making - work has finally begun on the building platform and services and the main construction phase is expected to start in January.
Simon Spark, on behalf of the Arrowtown Community and Sports Centre Inc, said once it was finished the society would give the building to the Queenstown Lakes District Council to manage and operate.
The council was providing up to $1million towards the construction of the multi-use facility.
Mr Spark said it would be a ``real asset'' for Arrowtown residents, as well as visiting teams and groups.
``We're grateful for council's support - that gives us the green light to push ahead. I'd also like to thank our other funding partners that have helped make this project a reality.''
They included the Lottery Grants Board ($400,000), Central Lakes Trust ($600,000), Arrowtown Rugby Club ($100,000) and the Wilding Trust ($125,000).
The council had previously confirmed $500,000 of funding.
Councillors recently endorsed an $800,000 contribution, with additional funding of up to $200,000 to underwrite any shortfall, pending the society's applications for funding from other sources.
It was not clear if the $800,000 council contribution was additional to its previously confirmed $500,000, or inclusive.
The finished building would include a bar and kitchen, changing rooms, showers, toilets and function spaces.
The main contractor was expected to be appointed in the ``next few days'' after a tender process.
Arrowtown ward councillor Scott Stevens acknowledged the ``extremely hard'' work the society had done to get the project off the ground.
Improvements to the playing field were also under consideration in the council's draft long-term plan, which would be subject to consultation during March and April next year.