All 206 slips are being removed as part of a $2.22-million waterfront improvement plan.
The docks will be replaced by spring, says Ted Hill, the city's property manager.
"Our goal is total completion and fully operational by May," Hill said on Thursday. "We won't lose any boating season at all."
Orillia's past council approved Phase 1 of the project in 2010 for upgrades to electrical and water at a cost of $1.01 million.
The project was delayed until spring 2011 due to design problems.
During 2011 budget discussions, council approved Phase 2 and 3 for $1.21 million.
The existing docks, which have been in place since 1988, are rotten, Hill said.
"Some of the floats are beginning to sink and some of the wood backing is in pretty rough shape. They're rotten."
The electrical services are being improved and will be made larger.
"They were a little bit small for some of the bigger boats," Hill said.
One set of docks will be increased physically in size, "so some of the bigger boats can get in and out of there easier."
The docks are still under design, but there should be about 220 slips, Hill said.
Unique Demolition began removing the docks on Monday.
"They said two weeks, but it looks like it's going to be quicker than that," Hill said about how long the removal will take.
The new docks, yet to be tendered, will be constructed off site.
"They will be built in someone's shop over the winter," Hill said.
It will take about six weeks to build the docks. Installation will take place in March over a two-week period.
Around this same time, electrical upgrading will begin, Hill said.
The project is expected to bring improved service to boaters and provide financial spin-off to downtown Orillia.
"The waterfront is a tremendous sister... to the downtown," Hill said. "It really brings a lot of people into the City of Orillia."