The new facility has been created at Roseberry Primary and Nursery School, in Chester-le-Street.
It is available for local groups and organisations to use and was created to replace the former community room, which was used to provide 20 new nursery places for two-year-olds.
Headteacher June Lee said: “We pride ourselves on being at the heart of our community and this new facility will bring a much-needed resource for local people.
“The funding for the new community facility has also enabled us to start up nursery provision for two-year-olds in what was our previous community room, so pupils and parents are benefiting as well.”
Cllr Jan Blakey, Chairman of Durham County Council, will officially open the new community facility on Wednesday 30 September.