The school has been supported in its appeal by Welsh stars
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Work has begun on a £4.6m new school building in Gwynedd for children with severe special educational needs.
The new-look Ysgol Pendalar is being built on a new site near the Arfon leisure centre in Caernarfon.
Gwynedd Council said the development underlined its commitment to providing "first class resources" for young people with special needs.
The building will give the pupils a chance to integrate fully, said council chairman Arwel Jones.
Ysgol Pendalar head teacher Ieuan Roberts said the building for up to 85 pupils will make an "enormous difference".
"The present building was built merely to care for the children," he said.
'Chance to communicate'
"We have moved on significantly - now we educate our children and that's the aim of the new building.
"We have been waiting for years and have been raising enough money to get the most effective resources so that our pupils get the same chance as any other child to communicate."
Work on the specially-designed building is scheduled to be completed by the beginning of 2007.
An appeal was started in 2004 to raise £500,000 for equipment for the new school.
Events including golf tournaments, sponsored bike rides and concerts have already raised over £100,000.
Supporters include harpist Catrin Finch and actor and entertainer Dewi 'Pws' Morris. An auction of Syr Kyffin Williams' pictures for the appeal in September raised another £40,000.
Opera star Bryn Terfel will perform in the town's Galeri arts centre in January in aid of the fundraising effort, with tickets selling out in a matter of hours.