"The fund will cover the cost of employing a campground ambassador, security, ground maintenance, the servicing of toilets, and rubbish and recycling facilities," Naude said.
"Freedom camping provides a significant boost for our local economy, bringing visitors to the area for extended periods of time. It's important we cater for our visitors whilst balancing the environmental impact."
There will also be a new electric barbeque funded by the Eastern Bay Energy Trust, valued at more than $20,000.
It will be installed next to the River Edge Park Miniature Railway in Whakatāne.
It is expected to be ready for use before Christmas.