The "willing workers" from the Mainstream Employment and Community Participation trust from Dunedin are operating the camp on a six-month lease.
The trust is led by willing workers managing director Stu Ellwood and supervisor Angie Walton.
The Waikouaiti camping ground provides work for the willing workers.
Mr Ellwood hopes the camp will attract more visitors and campers to the town with a "Waikouaiti Woodstock" event on Friday and Saturday, January 23 and 24.
The Mainstream Employment and Community Participation Trust helps to establish people with disabilities in mainstream employment.
The trust took over the lease of the Waikouaiti camp in October when another potential lessee decided not to use the camping ground.
Eight members of the willing workers undertook 260 hours of work helping to set up the camp up.
The work included clearing rubbish, cleaning out ditches, landscaping improvements around the camping ground and cutting back hedges.
Willing workers have worked at the Waikouaiti camp for between 200 and 240 hours in November and December, Mr Ellwood said on Saturday.
Mr Ellwood hoped the Waikouaiti Woodstock event would attract more campers, as well as providing entertainment for local people.
It well be run on the weekend after the Catlins Woodstock.
The Waikouaiti camp has attracted good numbers of campers and caravanners over the Christmas and New Year holiday period.
About 250 people have stayed in the camp each night, Mr Ellwood said.
The willing workers hope to continue their lease of the Waikouaiti camp after March, providing the camp is proven to be viable, Mr Ellwood said.