The pad replaces the Mataura swimming pool, which was knocked down about a year ago.
The pool was closed by the Gore District Council in 2017 due to falling patronage.
The final stage of the two-stage Tulloch Park development has begun, which includes the installation of the splash pad, an outdoor play area with sprinklers, fountains, nozzles, and other devices or structures that spray water.
At the Mataura Community Board meeting on Monday, the board was told work had begun on the splash pad, which will be one of the biggest in the South Island.
The project was delayed due to issues obtaining a building consent. This was issued in December but work did not start until after the Christmas break.
The total cost to complete the project is $1,128,305. Of this, $1,017,978 has been secured from external funders, and $70,000 is carryover funding from the stage one development.
There is still an unfunded balance portion of $40,326.84. External funding includes $500,000 from the Three Waters Better Off funding and $200,000 from the Tourism Infrastructure Fund.
Though the completion date is about mid March, it is hoped if the weather is good and work goes well it could be completed earlier.
The board is considering a community opening for the pad.
Cr Neville Phillips said it was exciting construction had begun for the splash pad, which was another good asset for Tulloch Park.
The park now has a pump track, basketball court, picnic tables and barbecues, as well as the splash pad.
It was sure to bring in people from around the district, Mr Phillips said.
The pad has been designed in such a way it can be upsized for little extra cost.