The community, upset at losing the town's sole service station in July, rallied together in a quick-fire fundraising effort that will pay for new underground fuel tanks and a new purpose-built retail area.
Clinton ward councillor John Cochrane, who helped engineer the community effort, said it would call for tenders this weekend for the building to be knocked down.
An engineer's inspection suggested there was too much work and cost involved in trying to renovate the existing structure and it would make more sense to build something new.
Mr Cochrane hoped the retail part of the business would be ready by March next year but petrol and diesel should be available by the end of November.
A new community group, which will own the revitalised business, had yet to formally sign an agreement but has struck a deal with an un-named fuel supplier.
Mr Cochrane said the fuel would be available to anyone carrying an eftpos card.
The town's former BP service station closed suddenly in July after the owners could not afford to pay for the installation of new underground fuel tanks.
The closure resulted in the loss of five jobs.
It is not known how many staff will be needed to run the new community-owned business.
