A new water feature, seating and decorative paving will form part of a pocket plaza taking shape at the southern end of Tutanekai St, at the entrance to Rotorua Central Mall.
The project is a partnership among Rotorua Central's iwi owners, Pukeroa Oruawhata Trust, and Rotorua District Council.
While the plaza is on land owned by the council, its development costs are being funded by the trust.
Council Inner City Revitalisation Strategy portfolio leader, councillor Karen Hunt, said the design will enhance the evolving and increasingly fresh look of the inner city that was taking form.
"Importantly for us, this is a genuine partnership project between the council and iwi business, and an example of how things can be done through collaboration and pooling resources," Ms Hunt said.