The project has been on the agenda for several years, especially after high tides and storm surges battered the old wall to the point where officials believed totally new protection was needed.
A digger and truck are combining to create the new seawall.
The old wall, made of wooden beams, had fallen away, offering little protection from tidal conditions to residents who look over the estuary towards the sea.
Large rocks from a nearby farm are being carted to the foreshore area where a digger scoops them up and places them into position.
More than half of the new seawall has been out in place and it is expected the job could be finished within the next fortnight.
Pounawea resident Russell Kirk said it was great to see the new wall under construction.
He praised the staff from SouthRoads for their efforts, too.
Others spoken to said the wall was long overdue and they were looking forward to it being ready for the coming summer months.
The Clutha District Council awarded the contract to SouthRoads for $119,953.48.
Eight contractors submitted tenders for the work with prices ranging from $85,614 to $260,891.
