The Associate Health Minister has announced Ashburton Hospital will receive an $8.7 million upgrade to improve services and make it earthquake safe.
Some of the hospital's facilities were closed after the recent damaging Christchurch quakes.
Jo Goodhew says the project includes the demolition of unsafe buildings and the construction of a new theatre and procedure room, as well as earthquake strengthening and refurbishment of the ward blocks.
Mrs Goodhew says the upgrade will be funded by $7.2 million from the Canterbury District Health Board and $1.5 million from the Advance Ashburton Community Foundation and should be finished by the end of 2014.
It is part of the Government's wider plan to redevelop the DHB's hospitals, expected to cost more than $500 million.