It is due to be unveiled next month.
At the West Otago Community Board meeting on Wednesday, member John Herbert said the foundation had been laid and construction of the plinth had started. All was on track for the memorial to be unveiled on Anzac Day.
The memorial is about 5m from the Kelso flood memorial at the site of the former West Otago township. The project has been estimated to cost about $7000.
The council has set aside $2000 from its war memorial repairs budget for the project.
The concrete war memorial will be almost 2m high and will reproduce the names of those on the Kelso honours board - all those who served and the fallen. There are nearly 100 names from Kelso.
The idea was brought to the board's attention last March and members agreed to speak to the West Otago community to gauge whether there was public support for it. The idea received support from the RSA and Kelso residents.
Relatives of those who left Kelso to serve in World War 1 or World War 2 have also expressed their support, with even some North Island people contacting Mr Herbert.
