Ōtumuheke Hot Stream is closed to swimmers until June 20 while a new bridge is installed.
The new toilet block and changing room facilities is already in place and contractors are now building a viewing platform on top of the block.
Next, terraced seating around the public bathing area and a new bridge will be installed.
The council has partnered with Patuiwi Reserve Trust, Tūwharetoa Trust Board and the Department of Conservation to develop this spot. Taupō Police and Waikato Regional Council have also been involved.
Construction will continue until July. Signage will guide visitors to the areas of the site that are safe for use.