The Government is to give $650,000 towards a temporary events centre in Hagley Park.
This will be in addition to $491,000 to be allocated by the Festival Lotteries Fund and $1.2 million from the Christchurch City Council.
Earthquake Recovery Minister Gerry Brownlee says Christchurch is desperately short of entertainment venues following February's quake.
A large inflatable dome will be erected in the park and used for major events, such as a fan zone for the Rugby World Cup, the Christchurch Arts Festival and the World Buskers Festival.
The venue will be in place for six months from July, but the council says it could stay longer if there is enough demand.
A place to watch the rugby
The fan zone in Hagley Park will provide a place for people to watch Rugby World Cup games live on big screens.
Christchurch was set to host key matches, but the extent of damage caused by the 6.3-magnitude quake, including to the stadium, means they have to be held elsewhere.
Christchurch City Council marketing manager Richard Stokes says the layout will be as close to a real match as possible with large screens and bank seating on either side of a rugby field.