Dunedin City Council parks and recreation group manager Scott MacLean said planning consent had been granted by the council, the former camping ground building had been removed and excavation of the Memorial Park site had started.
The old pool would be demolished next year, he said.
Changes to the Gordon Rd-Eden St intersection, required as part of the pool project, would begin about next September.
The new pool would open mid-2023.
Members of the Mosgiel community were helping to recycle old surplus material from the site such as corrugated iron, Mr MacLean said.