A relocatable house park is being built at the Whakatane Domain Holiday park for those made homeless by the flooding in Edgecumbe.
The $1.55 million project would help meet the pressing short- to medium-term accommodation needs of people in the district.
The relocatable houses, which look like cabins, would stay on as accommodation for tourists in the long term.
In a Whakatane District Council meeting described as "extraordinary" it was decided that the south-eastern section of the holiday park would be used and that temporary residents could stay in the units before the four-week limit.
Whakatane District Council and the Ministry of Business, Innovation and Employment were jointly funding the relocatable house park.