Mini Thinkers will pay for its staff and subsidise families to take part in the March 15 event.
Of the 150 families, about 50 would be taking advantage of the subsidy, along with about 20 of the centre’s 24 staff.
Mini Thinkers curriculum manager Liz Mitchell said physical activity was an important part of what was encouraged at the daycare and the event was an opportunity for families and staff to come together.
"We like children to be active.
"It’s a community driven event, it’s really nice to get the parent community to join us."
The centre’s move has been praised by Sport Otago.
Sport Otago business development manager Michael Smith said an increasing number of businesses were entering groups and said 16 teams had been entered by businesses.
"It’s great for workplace morale, it’s healthy, it’s something we’d love to see more of.
"It’s engaging with well-being and fitness which can only be a good thing."
Individuals or groups could register online to take part in the annual event.