Anna Hayes, from Maori Weaving Rotorua, has created 16m of harakeke rope and 30 muka ties, from which locally made wooden decorations will hang.
The metal-framed Christmas tree, which was put up for the first time last year, replaced its predecessor which was damaged beyond repair when it was blown over by wind in 2014.
This year it will be decked out in green tinsel to cover its frame with decorations including locally made wooden creations.
The council's project manager Mandy Godo said last year some of the decorations were found to be past their use-by date or were damaged and couldn't be re-used.
"This year we have had advice from a company which supplies decorations to many councils and commercial-sized decorations were ordered well in advance."
The tree will add to the lighting already established in the inner city through the Light Rotorua campaign which encouraged retailers to light up their verandas and windows.
Several alleyways in the central city are also lit, along with trees along Arawa St and more recently, the ginkgo tree in Kuirau Park, at the intersection of Arawa and Ranolf Sts.
This week one of Rotorua's former official public Christmas trees, the sequoia on the lake shore in line with the end of Fenton St, was lit to add some festive cheer at the lakefront.