"This project is seen as a good example of a community coming together to achieve an outcome for the good of the community," said ECCT chairman Geoff Milner.
"The council has led this project, there has been community consultation, and we are seeing huge local community and council support for a project which combines a number of organisations under one roof.
"The Waihinga Centre will provide a focal point for the South Wairarapa community for many years to come."
South Wairarapa Mayor Adrienne Staples said the council is excited about the grant.
"Not only does it bring the fundraising target closer, but it also provides firm support for the concept and design and a further mandate to proceed," Mrs Staples said.
"The centre will provide services and accessibility for a diverse range of people of all ages and will be the most significant community facility development for Martinborough for the last 50 years and for the next 50 years."
Led by the Martinborough Town Hall Steering Group, community fundraising has so far reached almost $1.6 million from 86 donors including the Eastern and Central Community Trust grant and another grant of $150,000 from the Trust House Foundation.
Mrs Staples said there was now a strong push to reach the fundraising target so detailed designs can be done.
Upcoming fundraising activities include continuing with a cattle drive, a contemporary art auction on May 30 and ongoing opportunities for businesses, families and individuals to make donations.
Preliminary design of the centre was completed last year and, subject to funding targets being met, the next step was to seek council approval for detailed design of the centre in June this year with call for construction tenders later this year.
It is hoped the centre would open in early 2017.