Te Arawa Maori Returned Services League member Te Kei Merito led today's blessing of the memorial and taonga surrounding the key site.
He said it acknowledged those from Te Arawa who fought in WWI, both those who did not return and those who did, as well as reviving its mana.
People attended the blessing from numerous organisations including the Rotorua Museum, Te Arawa Maori Returned Services League, Rotorua Lakes Council, RECT and Te Puia.
Rotorua Mayor Steve Chadwick said it was a significant day and she was "thrilled" the actual restoration was now under way.
It was a wonderful journey which started in 2014 when the Rotorua District WW100 Commemorations Committee was convened for the first time to oversee events and projects which commemorated WWI, Mrs Chadwick said.
The committee agreed restoring the Te Arawa Soldiers Memorial and researching and promoting its history to the community would be a fitting way to commemorate Rotorua's contribution to the war, she said.
"As a community we care about our past and our stories, and those who shaped this wonderful place."
The New Zealand Maori Arts and Crafts Institute became involved and the decision was made to replicate the eight original tekoteko and four "wheku form" tekoteko, which surround the memorial, in bronze.
Rotorua Museum director Stewart Brown said he thought it would be significant when the memorial was unveiled.
"We are delighted to finally get the project under way and are really just looking forward to seeing it completed in 2018," Mr Brown said.
