Hawke's Bay Regional Council acting chairman Rick Barker said no fund could ever fully compensate those suffering long-term illness.
However, "this fund is a clear statement that both councils acknowledge that loss and suffering, and in doing so offer a contribution to help those people with their lives".
While the Government Inquiry into the outbreak - which reconvened this week - found neither council had directly caused the illness, both wanted to assist residents who were struggling to recover from it.
"Both councils realise how important it is to have a fund to which people can apply to receive support," Mrs Hazlehurst said.
This was welcomed by gastro victim Scott Kelly - who said an application would be made to the fund on his behalf.
"That's the most positive news I've heard for a year," he said.
He thought he would have been one of the worst affected by the outbreak - it caused him to spend three weeks in hospital, lose his job, lose 12kg, take out a $20,000 loan to keep up with his mortgage, and undergo surgery to remove a quarter of his bowel.
"I'm still not 100 per cent but let me say, I'm getting on the right track," he said. "I just want to move on really."
Another still suffering from effects of the illness, Kerry Mackintosh, said while she was happy the fund was open, she did not have the time to apply for the fund.
The Havelock North resident was admitted to Hawke's Bay Hospital with Guillain-Barre syndrome, before suffering from reactive arthritis as a result of the outbreak.
She thought it would be helpful for some of the younger people who had been affected.
"I think especially the young families they probably needed that help a lot earlier, but it's how you go about it, where the funds come from and how they're allocated, it always turns into a bit of a dog's breakfast."
The councils have been working with Government agencies on how best to set up and distribute the fund after receiving information from residents who had suffered such long-term illnesses.
The health assistance takes the form of one-off payments with applications assessed by an independent medical professional and a panel making the final decision.
At this stage, Mrs Hazelhurst said they did not have any indication of the numbers of people who could apply to the fund.
"Given the complexity and range of personal scenarios it is important we wait for the applications to come in."
The fund opens tomorrow - a day before the first anniversary of the contamination of the water supply, which struck down an estimated third of residents.
When asked if this timing was planned, Ms Hazlehurst said their priority had been to deliver the "Community Health Assistance Fund" as soon as possible.
-Community Health Assistance Fund forms will be available on the Hastings District Council website and from the Hastings council office and libraries from tomorrow.
-Applicants will need to supply a doctor's referral confirming the relationship between their long-term illness and suffering campylobacter as a result of last year's Havelock North water contamination.
-Applications close on September 22.
