Wanganui Mountain Bike Club spokesman Doug Rennie said the bike park was a great opportunity to promote cycling and family recreation.
Mr Rennie said it was a real community project and would be done in stages, with individuals, groups and local businesses chipping in.
Local businesses including Bullocks, Jurgens and Loaders were providing machinery, dirt and labour to assist the project.
Mr Rennie's business, The Bike Shed, and the mountain bike club are designing the pump tracks, while For Our Kids is donating funds to put towards signs, fencing and picnic tables.
The first stage, which is expected to be completed early next month, will include safety fencing erected around the site, dirt for the tracks moved on to the site and the future tracks marked out.
As the project relies on the availability of voluntary labour, there is no firm completion date.
Councillor Philippa Baker-Hogan, the council's sport and recreation portfolio holder, commended the individuals, groups and businesses involved in the project.
"This is a true community project, and it's fantastic to see the enthusiasm from people and businesses throughout our community who have volunteered to help make it happen," she said.
-For more information on the project, or if you would like to contribute, contact Jodie Brunger at Sport Whanganui.