The Aaron Lodge site, in Kaikorai Valley, had not been used as much as anticipated, SDHB head of Covid-19 response Dr Hywel Lloyd said.
However, it had been established only as a back-up plan, he said.
"It was there very much as a fallback position for Central Otago and tourism and whether we had to move people out of Central and send them to Dunedin but we haven’t had to utilise it as much as expected," he said.
SDHB chief executive Chris Fleming’s report to last week’s health board meeting said a manager had been hired, which made the site operational.
A further two staff had been recruited to co-ordinate the transport and accommodation arrangements for new cases, the report said.
Late last year, neighbours were told that 22 units at the former holiday park could be used for supported isolation quarantine (SIQ).
Each DHB was required to have available accommodation for people and household members who tested positive for, or had been exposed to Covid-19 and who were unable to isolate in their own homes, the DHB said at the time.
Aaron Lodge was bought by Kainga Ora earlier last year and the site is expected to become a community housing development, with groundworks possibly starting next year.