A permanent creek runs through the site and the area has been cleared by volunteers in readiness for project commencement.
The two groups have invited any interested locals to join the project as volunteers.
The site is up the creek from the falls and will be available for community use on completion.
The project has attracted $203,000 in sponsorship from Shire of Kalamunda, Thornbury Accountants and Archon Legal, Kalamunda Rotary Club, Lotterywest and Bendigo Bank plus The Green Army and Chevron.
The funding will be used to develop pathways on either side of the permanent creek, bridge crossings and creative seating.
Thousands of indigenous species are being planted by volunteers.
“Rock walls have now formed small weirs and planting recently commenced along the creek edges in retained water,” Mr Robinson said.
Group publicity officer Rosemary Offer said “in one year, this project has grown legs since its original choice as a major community project”.