The project was launched on Monday night when members of the Balclutha Round Table presented the South Otago Historical Society with a cheque for $3000 - the proceeds from its recent annual golf tournament.
Museum curator Gary Ross said that money would go towards developing blueprints for the archive room.
Pricing quotes would then be obtained and funding applications made.
The archive room will be built above the museum's main feature room.
It will hold significant paper, photographic and textile collections in an environment that will meet national standards and guidelines.
"The room will be as safe as the Hocken in terms of the environment," Mr Ross said.
Mr Ross said the museum at present had a policy of displaying about 90% of its collection and only keeping 10% in storage.
The new room would mean that policy would change so that items would be rotated more often, moving from being on display to being locked in the protected environment.
The archive room would be the first part of the museum's overall strategic plan for the next few years, he said.
Mr Ross was reluctant to put a cost on the archive room project but said it would definitely be "into five figures".
