The pylon is in Oriental Bay, opposite the bottom of Grass Street.
Mayor Wade-Brown says the gesture will mark the "extraordinary life" of Wellington-born Nancy Wake - who has died in London, aged 98.
She was the Allies' most decorated servicewoman, collecting bravery awards from France, England, Australia and the United States.
Wake, who was born in Roseneath, was living in France when Nazi Germany invaded.
She joined the French Resistance and was smuggled to England for specialist training.
In 1944 she was parachuted back into France, where she coordinated the efforts of thousands of fighters and fought alongside them.
Wake - codenamed the "The White Mouse" because of her ability to elude capture - was at one point No1 on the Gestapo's most-wanted list, with an offer of five million francs for anyone who dobbed her in or killed her.