Whakatane District Council community services manager Paula Chapman said project fundraising was underway and encouraged any parties interested in being involved to get in touch.
"We are thrilled to have the opportunity to work with the community to make a whanau-friendly playground destination in Taneatua a reality," she said.
The playground will feature a basketball half-court, a climbing net, swings, seesaws and a toddler climber. It will also have electric barbecues for family gatherings, she said.
Whakatane Mayor Tony Bonne said the playground would be a wonderful asset.
"This is a fine example of the council having a true partnership with groups in the community," he said.
"This is how we can work together for the benefit of all."
The first stage of the playground construction began this week.