The idea of building a waka sprang from a chance meeting with one of Mr Busby's nephews.
Mr Lyall said the long-term project was a way of getting involved in the community for the right reasons.
The foundations were set last Wednesday when Mr Busby inspected and blessed a disused rural fire base just outside Horeke which will be converted into a waka workshop. The building could also serve as a youth centre.
"The idea is to get away from a focus on fires. We'll really be targeting youth and getting them involved."
Mr Lyall hoped the waka tete (a single-hulled waka that can be paddled by men and women) would be ready within two years.
Renowned international sailor Peter Goss, now based in Kerikeri, had started fundraising but they still needed a suitable kauri or totara log. The waka would be more meaningful if the log was gifted, Mr Lyall said.
Rural Fire expected to be heavily involved for the first five years of the 15-year project. It would then pull back and allow the community to take over.
Mr Lyall said he was prepared for cynics questioning how building a waka could solve a problem with fires.
"Other methods up to now haven't been successful. Fires are still increasing and the risks are getting higher. We have to do something," he said. Mr Lyall apologised to Horeke residents who had not been informed before last week's visit by Mr Busby. The project had gained momentum so quickly they had been unable to inform everyone properly. "We don't want to impose ourselves on the community," he said.