The grant is the first from its Impact for Tamariki and Rangatahi Fund and the grant recipient is He Ao Hou i Otepoti ki te Raki Charitable Trust.
The trust represents several groups and organisations within the North Dunedin Kahui Ako (community of learning).
North East Valley Normal School principal John McKenzie is the lead principal of the community of learning.
"We asked our school and early childhood leaders what would improve the lives of our tamariki and rangatahi.
"They told us that it is the health and wellbeing of children and their whanau."
Over a three-year period the grant will help support more than 2000 families from 12 schools and eight early learning centres in North Dunedin.
Two dedicated personnel will be employed.
One will be a strategic leader to map services for children and young people, identifying gaps and finding appropriate services to fill these gaps.
The second role will be a "triage position" — someone who will work with schools and early learning centres to help them access the most appropriate service to meet the needs of tamariki and rangatahi.
Otago Community Trust chairman Diccon Sim said trustees believed the funding would provide the right blend of hands-on resources and new ideas to make a genuine impact for tamariki, rangatahi and their whanau.
"We know that similar models are already operating successfully in schools, so it is pleasing that we can support this programme in Dunedin."