The Friends of Denlethen Woods were awarded a £5,00 grant from the Kincardine and Mearns Top-Up Budget.
It means their ambitious fundraising target of £17,000 has now been met, with additional money already pledged by the Forestry Commission.
The project will enable the transformation of the old curling pond in the woodland into a haven for wildlife, with remodelling of the water depth to a safe level, increasing the surface area, creating sanctuaries for pondlife on islands and the creation of a viewing platform, all planned.
The committee was told the area was a "tremendous asset" to Laurencekirk, within easy walking distance of the village, and that significant progress had already been made there thanks to the efforts of volunteers.
David Young, of the Friends of Denlethen Woods, said: "We have carved out a system of pathways which make a total of five miles of tracks within the woods.
"It is very well used but in the north-east corner there is an area that was a curling pond in the 1930s when the weather must have been colder. That ceased and it became a bit of a dump, quite literally, and rather dangerous so we decided to do something about it.
"We want to turn it into a nature reserve and create a viewing platform for educational purposes. We also want to put in a path of a higher standard which would be suitable for pushchairs and wheelchairs."
Councillors said the project would benefit Laurencekirk and expressed their support for the volunteers working to make it happen. They agreed to the £5,000 grant as requested.
Members also voted to support three other environmental projects, awarding £100 to the Portlethen Moss scheme to assist with workshops outlining the culture and history of the proposed local nature reserve. A further £400 was given to Stonehaven and District Horticultural Society to help pay for their spring and summer flower shows and other projects in the town.
In Laurencekirk, the Ladies Social Club was granted £900 to meet half the cost of putting up hanging baskets and flowers in the village. The area also benefited from the release of money from both the Common Good Fund and Top-Up Budget, £1,500 in total, to pay for Christmas lights.
A similar scheme in Portlethen, organised by the town's community council, was given the same amount as a contribution towards the £15,000 needed to deck out the streets for the festive period.