The Ministry of Education and school board of trustees have combined to fund the $450,000 project, which will provide a new assembly hall, gymnasium and other facilities, all under the one roof, for the 112-pupil school.
Board chairman Stewart Morrison said the project had been talked about for more than 18 months and he was excited to see it had finally started.
The former hall was no longer suitable and needed too much money spent on it to bring it up to modern standards.
Mr Morrison said the new building would be a great asset for the school and Kaitangata community.
Construction is expected to be finished by the end of the school year.
Dunedin-based Signature Property Ltd is the project manager and Calder Developments, of Wanaka, the main builder.
