A custom-made still by Rivet Engineering, in New Plymouth, to produce the spirit arrived in Gore on Tuesday.
Gore District Council arts and heritage curator Jim Geddes said he always hoped Old Hokonui whisky could be made at the museum as well as sold there.
The museum opened in 2001.
It was set up "with the idea that some day there would be on-site manufacturing", Mr Geddes said.
"The technology and the capital always evaded us."
The project cost about $200,000 and was funded by the provincial growth fund.
"We’re thrilled that the still has safely arrived in Gore.
"It’s like a big jigsaw puzzle sitting in the container at the moment.
"We can’t wait until it’s up and running."
He expected it would be installed by July.
The distillery would "use Southland input and labour" and would be viewable when the museum, which was being redeveloped, reopened.
"It’s going to attract people who want to come and see something which is not your normal distillery."
Still designer Steve Nally said it harked back to the history of moonshiners in the area, such as the McRae family.
"What we’ve built is a pot still, instead of column stills or other forms of stills, because of the Scottish heritage.
"The Scottish used pot stills traditionally."
The still has a distilling capacity of 500 litres and a four-hour trial run in the North Island proved it "quite exceptional", he said.
- By Fiona Ellis