The Auckland City Council and the Transport Agency is to spend $28 million redeveloping the Onehunga foreshore.
They have signed off on a deal to reclaim land and create parkland, beaches, walkways and cycleways.
A boat ramp, new carpark, toilet facilities and barbecues will also be constructed.
The Onehunga Enhancement Society says the agreement marks a major milestone in the development of the area and the changes will also serve the wider community.
Chairman Jim Jackson says the project, due to be completed during 2014, will benefit the wider community by restoring access to the large recreational water space.
The council says it will issue a request for tenders later in September.