The hatchery has been set up by the Waitaki Riparian Enhancement Society, a volunteer group intending to boost the salmon fishery in the river.
It is raising the salmon, which yesterday were up to about 4-5cm long, at Welcome Stream hatchery before their transfer across the river to the society's rearing race at Bells Pond.
There, they will be raised to an average 185g before being released into the Waitaki River via Welcome Stream in May or June next year, depending on growth rates and food availability.
The society was formed in April 2010 to improve the river, amidst growing concern about the decline of the salmon fishery on the Waitaki River, leading to a reduced salmon fishing season.
Secretary-treasurer Linn Koevoet yesterday said the society had spent about $64,000, invested about 4900 volunteer hours worth about $132,000 and had about $59,000 in donated materials and fish food for the project so far.
Last year, it had a trial run, harvesting eight salmon from the Hakataramea River, hatching eggs at McKinnon hatchery on the Rangitata River and releasing about 2000 fingerlings into the Waitaki River in May this year.
This year, the society trapped 62 salmon in the Hakataramea and brought them down to Welcome Stream, where they gathered about 130,000 eggs. Some were hatched at McKinnon hatchery and some at Welcome hatchery.
The McKinnon hatchery eggs returned south when resource consent was received for the Welcome hatchery. Some eggs and newly-hatched fish were lost during transport.
Mr Koevoet hoped the society would have 40,000 fish to release next year, the next step towards releasing up to 70,000 annually.
Volunteers at the hatchery monitor the fish about every two or three days, transferring newly hatched salmon when big enough from incubators into two long stainless steel tanks.
The hatchery has a warning system which alerts volunteers if water stops flowing into the hatchery, water levels are low or electricity is cut.
The fish will be released in batches of several thousand into Welcome Stream to establish a returning run of salmon which can be harvested for eggs to be raised for future releases, rather than have to take fish from the Hakataramea River.
In future, some will also be released from Bells Pond, upstream.
Some fish are also expected to continue up the Waitaki into the Hakataramea River.
Salmon released next year will start to return in bulk as 3-year-olds in 2015. Fins will be clipped so anglers can identify and record the hatchery fish, giving an indication to the society of the return rate.