The 244 athletes attended an opening ceremony at the Edgar Centre on Friday, cheered on by the crowd as they were introduced.
Hosted by Special Olympics Otago, the games will be held in venues across Dunedin over the weekend.
Athletes from sports clubs in Canterbury, Southland and Otago compete in bocce, basketball, swimming, football, indoor bowls, ten-pin bowling and powerlifting.
Special Olympics Otago chairman Rob Torrance said these opportunities could be "life-changing" for some of the athletes.
"It’s all about getting out, socialising and playing a sport," he said.
Athletes of all abilities were able to compete, whether they had an intellectual or physical disability and were put into "ability divisions" so they could play against people of a similar skill level, Mr Torrance said.
The games were a stepping stone for athletes heading to the next Special Olympics World Summer Games, which will be held in 2027 in Chile.