Pierre Vivant's sculpture was previously at the roundabout at Westferry before the road was reconfigured. But thanks to the tireless work of Conservative Councillor Gloria Thienel it now has a new home next to Billingsgate Market on Trafalgar Way.
Cllr Thienel (pictured below) said it was important that the tree, orginally built in 1998, returned to its roots.
"It's iconic," she said. "It's part of the Island and when it came down the response was phenomenal.
"I'm glad I could help it return to a spot where it's appreciated. People travel from all over the world to see this. It's a big tourist attraction.
"I proposed this as a site to install it at and it seems a natural home for it. It's seen from the DLR and Canary Wharf.
"It couldn't go back in it's original position but it's the next best place. Thanks to the support of The Wharf and Tower Hamlets Public Realm we were able to secure it."
The lighting up ceremony took place on Monday afternoon with mayor of Tower Hamlets Lutfur Rahman flicking the switch.
Staff from the council's public realm team will continue work on the roundabout in the spring, including painting the electric box green, working on the soil and pruning the trees.