Project spokesman Murray Paterson said he was pleased to see work resume on the lakeside section, after several months of delays.
"We had hoped to have everything completed before Christmas, but unfortunately contractor issues have held us up.
"This section is going to be a real feature, as trail users will be able to ride through native bush with first class lake views on full-width [2.5m] boardwalk."
He said work bringing the trail into Waihola’s lakeside reserve should be completed by the end of next month.
The section of the extension linking Lawrence to Milton should be finished this week, and the overall trail completed by spring.
It will allow people to ride 136km from Waihola to Roxburgh, and also provide links to Central Otago trails.