The Manapouri Art Group will paint a mural on the west entrance of the Manapouri Hall.
It would be painted by Danny Owen, known as "Deow", who made one of New Zealand's largest murals at Kelvin Hotel in Invercargill.
The painting would depict tussocks, mountains and native birds such as takahe, kereru and tui to lift the appearance of the hall, which is considered bland.
It was approved by The Manapouri Community Development Area Subcommittee and subcommittee chairwoman Shirley Mouat said the project had full support.
"We are just accommodating an art group that is very passionate about what they are doing. Every town should be accommodating people who have a desire to add value to their community."
The art group would meet costs and undertake the longer-term maintenance of the mural.