A film set construction crew is working on a section of the reserve, which has been fenced off and secured, to create the set for the film Kingdom Come which, at its peak, will employ up to 400 people.
Initial casting of extras for the film, being made by Wellington-based Southern Vineyards Ltd, has begun. Filming is due to start in February.
The Falstone reserve, popular with campers in the summer, is still open, with caravans already on site around the film set.
It is expected to take until December to complete the set, with some of the buildings more than two storeys high and clad in stone.
A small fishing harbour in front of the village will be built out into the lake. The aim is to re-create the biblical village of Capernaum, home to Christ during the years of his ministry.
Lake Benmore was chosen as one of the sites for the film because its shapes and contours resemble the Sea of Galilee, where the village stood in biblical times.
The set builders will take a break over the Christmas holiday period. Filming is due to start after Waitangi weekend.
Production of the film in Otago is due to finish in early March. The set will be removed and the reserve and lake returned to its original look. Filming will then shift to other locations, in Oamaru, Motueka and Hawkes Bay.