Construction's begun today on the long-awaited Waterfront Theatre Project, at Auckland's viaduct basin.

Reporter Dylan Moran says the building's a three way partnership between local and central government ... and new sponsor ASB, which will have naming rights.

"The theatre company is over the moon that construction has finally begun.

"They say it feels like the realisation of a dream after so much struggling with both local and central government."

The building is expected to take 18 months to complete ... the theatre company says it's not clear what show will headline the opening, but it will be opened with a bang.