Upper Clutha Water Group spokeswoman Mandy Bell said the group would start working almost immediately on the project.
"We will be ... working with the community on values and getting feedback on what is important to them."
When the funding was first announced last month by Environment Minister Nick Smith, Wanaka native plant nursery Te Kakano was the recipient, but as the project grew the water group took the lead role. However, Te Kakano was still involved, she said.
The regional council would hold the fund on behalf of the group, but all members would still have a say on how it was distributed, Ms Bell said. Regional council chief executive Peter Bodeker said the council was asked by the group to hold the funds because of the systems and experience it already had in place.
• The project will be discussed at the regional council's lake snow public information session on October 4 at 7pm at the Lake Wanaka Centre.