The Government will give $650,000 to help create a new temporary events village in North Hagley Park for Christchurch.
Canterbury Earthquake Recovery Minister Gerry Brownlee said the Government was also backing the Christchurch City Council's plan to stage a Rugby World Cup fanzone in the same village, as well as a travelling fan zone for east Christchurch.
The money is on top of the $628,000 of lottery grants already announced for Christchurch during the Rugby World Cup, bringing the total funding to more than $1.1 million.
The North Hagley Park events village will also support a wide range of events including the Christchurch Arts Festival, TV2 Kids Fest, the International Jazz Festival, New Zealand Cup and Show Week, and the World Buskers Festival.
Acting Economic Development Minister David Carter said events are one way of giving people a welcome focal point as Christchurch rebuilds.
"It is clear that residents and visitors are eager to take part in the Rugby World Cup, and the events sector can make this happen, but the city needs the venues."
Christchurch Mayor Bob Parker was delighted the city will be joining in the fun of the tournament.
"There are a great number of events which will still be happening in Christchurch during Rugby World Cup 2011 and we're pleased the city will be a part of the excitement of the tournament."