Brock House was built in 2008
A children's centre that opened seven years ago may have to be knocked down and rebuilt because of damage caused by dry rot.
Somerset County Council has already paid £16,965 to cover the costs of temporarily relocating the centre and a private nursery on the same site.
Now it has budgeted £820,000 in case it has to rebuild Brock House, in Norton Fitzwarren, altogether.
Parish council chairman Ken Hayward said the damage had come as a shock.
"I was at the opening of the building, I was at the design stage... I'm shocked and disappointed."
The children's centre was built in 2008 on semi-derelict land as part of the Sure Start programme and was opened that year by the Countess of Wessex.
It provided family services from toddler activities to breastfeeding support but those services have had to be temporarily relocated to the village hall.
A private nursery that leases part of Brock House from the council moved out two weeks ago, and county council staff who work there will move out this month.
Somerset County Council is investigating options to save the building, which may be able to be repaired, but has allocated £820,000 in its budget to cover potential rebuilding costs. It has spent £10,000 on temporary accommodation to house the private nursery, on land it is leasing next to the village hall.
A Somerset County Council spokesman said "potential structural issues" were identified in 2013 and a survey had confirmed the presence of dry rot.
"We are now considering whether to carry out repairs to Brock House or demolish and rebuild it. The timescales for both options would most likely see work begin later this year and be completed between January and May 2016."
He added that the council's legal team was "in discussion with the contractor's lawyers".
