A grant of $108,000 to Waiora campsite will enable two donated prefab classrooms to be converted into a 40-bed accommodation complex.
In a statement, Waiora Campsite committee chairwoman Vicie Hodge said the site was used by schools, scout groups and communities across Otago.
"Being granted the funds to update our accommodation, we are able to provide better opportunities to use our campsite and outdoor facility."