The community garden is one of 26 groups from Otago and Southland to receive between $500 and $5000 in the latest round of Fonterra Grass Roots funding.
Community garden secretary Beatrice Pratt said the committee was thrilled with the funding.
They planned to spend the $500 on wood to build raised beds for growing fruit and vegetables.
''We were delighted, because immediately we ordered more wood to expand our garden,'' Mrs Pratt said.
The community garden had certainly grown since it was first opened last year.
''We've got 18 beds now and we started with six.''
The group also received money when it won the Health and Wellbeing section in the Clutha District Trustpower Community Awards.
The Balclutha Rotary Club donated a tunnel house to the garden for tomatoes.
''It's brought a lot of community together in one place for the love of vegetables.''
Fonterra global sponsorship manager Kane Silcock said the Grass Roots Fund supported initiatives which enriched people's lives and benefited their community.
''It's our way of supporting projects and ideas that bring our communities together and make them better, safer, more vibrant places to be.''
The 26 groups which received funding from Fonterra brought the total number of community groups across Otago and Southland supported by Fonterra to more than 210 since the fund began in 2013.
''It's a way to say thanks to the people of New Zealand,'' Mr Silcock said.
The Edendale Volunteer Fire Brigade also received funding to help purchase a thermal imaging camera.
Mossburn Primary School will use money received to transform their school pool area into a community sports and arts facility.
