A giant 1.8 tonne brass bell, known as the "Nimmity Bell", fell and trapped the coordinator of the project beneath it in Nimmitabel.
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A NSW Police spokesperson said emergency services were called to the location about 2.30pm Thursday after reports the bell had fallen, trapping a 77-year-old man.
Nimmitabel Lions Club president John Harrington said the man injured was the bell committee coordinator Howard Charles.
"I got there about 10 minutes after it happened," Mr Harrington said on Friday.
"I thought 'God, how is he still alive?'. I think most of the people there were in shock.
"But at least he's still with us. He'll probably keep terrorising me for years to come!"
A NSW Ambulance spokesperson said the bell had not landed on Mr Charles, but he had been trapped inside it when it fell.
They said ambulance officers on the scene found he had suffered a head injury, bleeding from the hand and possibly had a sore ankle or leg and was airlifted to Canberra Hospital.
On Friday morning, the police spokesperson said the latest update on Mr Charles' condition was he most likely would have to have surgery on his ankle and possibly had a collapsed lung, but at this stage his injuries were not life threatening.
Mr Harrington said, "Knowing Howie, he'll be OK. He's a pretty tough bugger."
The 1.8 tonne bell was made in New York in 1920 and was only installed about four weeks ago, after a long campaign led by the Nimmitabel Lions Club.
A community fundraising campaign for the project raised $60,000 in six weeks and the NSW government also donated $10,000 towards the purchase of the bell.
Snowy Monaro Regional Council mayor John Rooney said in March 2019, "The bell will serve as an additional reason for tourists to stop in town. More tourists in our towns is always a positive outcome,"
Mr Harrington said the bell had not been damaged in the fall and would be reinstalled once he received a report from SafeWork NSW, as the matter was now before that organisation.
"The worksite was a very safe worksite," he said.
"If I said 'No, the project isn't going ahead', I think he [Mr Charles] would be on my doorstep tonight."