The initiative is led by residents Mike Savage and Liz Simms.
"We have the endangered native dabchick on our lake, which are rarer than kiwi and now extinct in the South Island," said Ms Simms.
"Eight of us are voluntarily involved with Department of Conservation to count these little birds, and numbers have gradually increased from the time the rat baiting started. We'll never get rid of the rats, but we can reduce their numbers."
The programme was initiated by Lake Tarawera resident Bob Scopes, who died in 2012.
"Funding is a crucial part of this rat control programme. Bob worked out that it takes at least $15,000 annually to keep it going, with rat bait the main expense."
Mr Scopes organised more than 20 volunteers, designed and made rat bait stations, organised funding for the bait and researched and documented trends and statistics.
In the past the funding came from a combination of private donations, Department of Conservation and the regional council. The agreement with the regional council ensures continuity.
The plan is set over a five-year period and costs around $100,000. The Regional Council provides half towards the work for residential areas and 75 per cent for High Value Ecological Sites at Kariri Point and Otumutu Lagoon.
"Tarawera residents have really got behind this project, initially spending their own money for bait and bait station maintenance," said Rotorua-based Bay of Plenty Regional Council land management officer Steph Bathgate.
"This plan is a good example of how regional council can support work already happening within communities. It ensures the group can focus on the work, rather than being concerned with raising money. The dedication the community has to their environment is inspiring."