The Chinatown BIA announced Tuesday that there is to be a traditional paifang, or archway, built at an entrance to the community by next summer.
It is a common structure for Chinatowns and is often an iconic image of the city’s Chinatown.
The arch is being designed by the City of Beijing, which is also donating construction materials and providing architectural consultation for free.
The City of Ottawa is not charging for the land, while the provincial and federal governments will each contributed $125,000, leaving the BIA to raise the remaining $350,000.
Beijing and Ottawa are sister cities, meaning the two have an agreement to encourage cultural and commercial ties between them.
Ottawa Centre MPP Yasir Naqvi and Federal Minister John Baird also attended the announcement.
Construction is expected to begin with a groundbreaking ceremony this fall.