"We now have school students wanting to learn to knit.
"They will come and sit with the residents and staff and learn a new skill."
The knitters told the Dannevirke News it had been wonderful reminiscing as their pile of peggy squares grew.
"I was thinking of one, but we've eight blankets now, joined from more than 300 squares and the activity has stimulated them so much," McLennan said.
"The flow of memories has been special."
Visitors have also contributed, along with Rahiri staff and manager Tina Broad.
"We now have an outside knitting club visit once a month for a natter and to knit," McLennan said.
Starting with a box of donated wool, McLennan now scours op shops.
"We are always looking for wool, because we continually run out and we'd love to receive any donated wool."
Years of history and love come together, with every square telling a story.
The residents remember baby garments and school jerseys they have knitted.
But this isn't just a female group, men at Rahiri are helping too, winding hanks of wool and removing knots.
"It gives them all a sense of purpose," McLennan said.
"One of our men sat with another resident to wind wool and they had to be reminded to come to lunch.
"They have old-fashioned values and didn't want to stop until the job was done."
Rahiri visitor Norma Evans volunteered to put the blankets together, but little did she realise the task ahead.
"It can be a work of art sometimes making them all fit," Evans said.
"This is so good to keep their fingers working, and knitting relieves tension."
In three and a half months, Evans has put together eight blankets.
"I had no idea this would grow like this. It takes me hours, but I find a way to blend them all together."
Also helping out is Helen Ransom, who ties all the ends in on the peggy squares and also puts together the delicate little squares to make baby blankets, which are ideal for wrapping around little ones in their car seats.
"It's been quite a good job to do while watching the Commonwealth Games on TV," Ransom said.
The volunteers are vital to the project.
"None of this can happen with our volunteers giving their time so lovingly," McLennan said.
Rahiri resident Rose Hulena's sister taught her to knit on her fifth birthday.
"I knitted my dolly a scarf," Hulena said.
"I had two brothers who knitted and we knitted v neck, sleeveless jerseys up to the arm hole and my mother finished them."
As a youngster, Hulena spent two pence on a special reindeer pattern, but it was during the war years and only expectant mothers could buy white wool.
"I had that jersey for years," she said.
Valerie Glasgow was taught to knit by her father.
"Mum taught me to crochet fancy work and she liked to wear her fancy apron in the afternoons."
And while Heather Gundersen is part of the knitting circle, she has considerable experience at sewing.
"I made all the kids clothes," Gundersen said.
Although the large peggy-square blanket will be raffled, the others will be donated to community organisations.