Dunedin Hospital Early Childhood Centre manager Sally Ensor said the centre would cater for the growing number of health staff based at the Wakari campus.
Opening on Monday, it has capacity for 50 children.
Members of the public were welcome to attend a celebration being held tomorrow at 10am.
''The Wakari centre is something we've been planning and preparing for several years, so very exciting to have it under way now,'' Ms Ensor said.
Parent and Wakari staff member Tash Bambry, whose daughter, Avaley (16 months), and son, Cullen (4), would attend the centre, said her morning and evening commute would become easier.
At present, her children are enrolled at the Dunedin Hospital childcare centre.
It meant parents could visit their children during the day, and it would be much easier for breast-feeding mothers, Mrs Bambry said.
About 500 staff are based at Wakari Hospital. The campus now houses the chief executive and associated corporate staff, and in recent years more clinical services have shifted from the main campus to Wakari.