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The park, Bike Glendhu, will encompass 50km of trails for all abilities and ages at Glendhu Station, and is the shared vision of station owner John McRae and keen local rider John Wilson.
Mr Wilson said the park had been in the works for two and a-half years and he hoped it would be open about October.
It was an exciting development for the New Zealand biking community, as well as locals and visitors, he said.
''The Southern Lakes region is already known as a premium mountain biking destination.
''Bike Glendhu will further enhance this with epic trails set amongst a backdrop of mountains and lake.
''There'll be a combination of trails.
''We see this as complementary to Wanaka being a biking destination and for people to come and do a variety of biking.
''We're trying to design flow trails so that they're accessible to a wide range of riders, so an experienced rider can ride it at a different pace and enjoy it, but a novice rider can also ride and enjoy it.''
Construction of the trail network - designed by Tom Hey, of Queenstown-based Elevate Trail Building - is now under way.
The network will feature a 3km kids' loop, 7km scenic family loop, 12km trail loop, an extended cross-country trail option and multiple descending options, including technical enduro, jump and flow trails.
When Bike Glendhu opens to the public there will be about 35km of trails available for riding.
The remaining 15km would be completed over subsequent months.
Mr Wilson could not confirm the cost of the park at this stage.
It was a ''significant project'' and the park's six shareholders made up a small group of investors.
''We're all average people with a passion and we've come together to pull it off as best we can.''
John McRae was delighted to be developing Bike Glendhu on his land at Glendhu Station.
''The terrain here is ideal for mountain biking.
''The Bike Glendhu ethos is to keep the land as natural and uninterrupted as possible, while still creating something pretty spectacular for the community to enjoy.
''We envision Bike Glendhu becoming a completely sustainable, high-quality adventure playground that everyone can share for generations to come.''
Mr McRae, a third-generation farmer at Glendhu Station, was pleased to be able to offer a sustainable form of tourism, while still enabling the land to be farmed at a reduced stocking rate.
''It enables us to pass the land on to the next generation with diversified income streams, while being considerate towards the environment.''