Chief fire officer Philip Muldoon said the grant was the first drop in the well to replace the fire station built 33 years ago by the Okareka community.
"The cost of setting up a new building is high and the Rotorua Energy Charitable Trust is the first trust we have applied to."
The current building does not have the facilities required and Mr Muldoon hoped to have a new station operating by this time next year, he said.
"It is something we sorely need. The existing station has no toilets and the office is inadequate.
"We have to pull the appliances [trucks] out to put our uniforms on and that definitely adds time on our response."
Mr Muldoon, who has been involved with the Okareka Volunteer Rural Fire Force for 17 years, said they would build a larger building that could accommodate a civil defence meeting room and could be used by the community.
"The various appliances housed in it make a very small office. The lucky members get to fit at the table and the unlucky ones have to stand around," he said.
Mr Muldoon said he was surprised by the grant.
"It was a very pleasant surprise. We are quite involved in community events so it all sort of helps for the good of the community," he said.
The Okareka Volunteer Rural Fire Force has 14 members but was always looking out for more, Mr Muldoon said.
To enquire about volunteering or to donate building supplies, contact Phil via www.facebook.com/OkarekaRuralFire.