The skate park that has long been on the want -list of local youngsters was made possible as a result of the Community Grant scheme which was established by North Lincolnshire Council in 2011, with the aim of supporting local projects.
Work on the sports facility at the New Generation Park is expected to be completed within two weeks.
Council planners in Scunthorpe were told almost a year ago that the park is a much-needed recreational facility for the young people of Keadby and the surrounding district, who were lacking anything of that nature.
Keadby Parish Council backed the scheme and sought planning permission to install the new facility off Station Road.
Skate parks are purpose-built facilities for skateboarding, BMX, scooter, and wheelchair use. They typically contain ramps, bowls, half-pipes and quarter-pipes.