Work should begin soon on the rock and wood water feature, the Wanaka Springs Community Trust and Wanakafest Community Trust said.
The springs trust had been raising funds since 2007, when it first came up with the idea to create the water feature.
Grants have been received from the Sargood Bequest, the Otago Community Trust and the Central Lakes Trust.
The Wanakafest trust, Willowridge Developments Ltd and Stonewood Homes have committed to contributions in labour and money, to the value of $22,000.
Those funds were raised during the 2009 Wanakafest.
The feature will be built on the walkway leading from the Dinosaur Park to the Wanaka Yacht Club.
Wanakafest trust chairman Brent Harridge said the water had been tested and it was "incredibly pure".
"It filters through the rock and ends up in Lake Wanaka.
Now it will be a major asset for our town to enjoy," Mr Harridge said.
Springs trust spokeswoman Jude Battson said the trust was pleased the Wanakafest trust had decided to support the project.
"This project started with a vision from the Wanaka Springs Community Trust to create a place to honour the water of the Upper Clutha," she said.
