The group was given £500 by West Somerset District Council's cabinet towards the £21,241 cost of carrying out a feasibility study into its plans.
A further £500 has already been donated by South West Water while the bulk of the money will come from the Devon and West Somerset Key Fund, if a grant application proves successful.
The association wants to set up an Exmoor Pony Heritage Centre to act both as a tourist attraction and as an educational resource to raise awareness of the rare breed .
The centre would contain a library featuring photographic and written material, while visitors would be able to see displays detailing the history of the pony and what was being done to conserve it.
Other exhibits such as bones, pony skins and farming artifacts would also be on display, children would have their own drawing area, while experts might also be on hand to talk to visitors.
Members at the district council's cabinet meeting were told the feasibility study was vital if the association was to attract large-scale funding for the proposed centre.