Central Otago District Council property and facilities manager Mike Kerr said the toilet block on Lode Lane, near Cromwell Mall, struggled to cope during busy times.
Over the past three years, there were an average 20,400 users a month from November to March, peak visitor season.
From April to October, the toilets had to cope with 6200 visitors a month.
Over the past three years, use had increased by 24%, Mr Kerr said.
The new toilet block is being installed on Murray Tce, opposite Cromwell Mini Golf.
The block will have four unisex toilets.
Installation of water services started on January 16 and the new toilet block was placed on site this week.
Services and paving would be completed over the next two weeks.
The council decided to build new toilets in central Cromwell in June 2017, when funding was confirmed from the Government’s regional mid-sized tourism facilities grant fund.
The toilet block on nearby Lode Lane would stay open, Mr Kerr said. Mr Kerr said the council’s 2018-28 10-year plan allowed for more toilet upgrades around the district.
The Lode Lane block has five unisex toilets.
Mr Kerr said the new toilet block would open in mid-February.
At Thursday’s Cromwell Community Board meeting, Cr Shirley Calvert floated the idea of decorating the new block’s exterior, in asimilar manner to the new Tarras toilets.
The Tarras block features a large mural depicting the area’s most famous sheep, Shrek.