The Twizel Promotion and Development Association is behind the project and plans to engage a professional film-maker to produce a DVD.
The project, which has received a grant of $11,250 from the Meridian Energy Waitaki community fund, will help to preserve the knowledge of the town's development.
"We will tell the history of Twizel's origins from the early pioneer days to the construction of upper Waitaki hydro scheme," Joy Paterson of the Twizel association said.
Meridian's grant would enable the association to conduct interviews, review existing material and undertake research and start working on a script.
Archive film, still photos and interviews with locals, experts and visitors would be used to highlight the history and physical beauty of the town and its surrounds.
"It will help show how Twizel has become so much more than a construction town," she said.
Once complete funding was secured, the project was expected to take about a year to finish.
Meridian Waitaki community fund chairman Mark France said the history of Twizel would be preserved for many years to come.
"Locals and visitors alike will be fascinated by how the town evolved. There is so much interesting information available, so we are sure the finished product will be a success," he said.
Other grants made were:
Aoraki Mount Cook School $15,000 (outdoor area project); Lake Tekapo School $10,000 (towards a minivan); Otematata Residents Association $9,753 (heating for the community centre-gym); Kurow Rugby Football Club $9000 (upgrading project); Mackenzie High Country Plunket $9000 (outdoor environment project); Kurow Rugby Club $7719 (electronic scoreboard); Waitaki Valley Community Society $5000 (Kurow Island project); Mackenzie St John $4000 (defibrillator simulator); Aoraki Mt Cook Playgroup $3295 (play equipment); Omarama Playgroup $3000 (upgrading equipment); Kurow Plunket sub-branch $3000 (renovation project); Twizel Area School $3000 (reading resources upgrade); Twizel RSA $2000 (computer, printer and software); Lake Ohau Conservation Trust $1879 (shoreline weed-control project); CCS Disability Action Waitaki $670 (information day).
Applications for the next round of grants close on October 27.
