The holiday home was shifted to Cairnmuir Camping Ground this week and it is the first Immune Deficiencies Foundation of New Zealand (IDFNZ) respite facility in the South Island.
The foundation has more than 60 families on its books and the home will be available for members and their families to use for a holiday, free of charge.
"This is a dream come true for us. Some of our families spend so much time in hospital that they never get any holidays, or if they do, they struggle to be able to afford having time away.
"We're delighted to have this facility available," IDFNZ South Island board member, Laura Hannah, of Dunedin, said.
The organisation supported people who had had liver or bowel transplants as well as those chronically ill with primary immune deficiencies.
The location of the home was extremely important, IDFNZ general manager Janet Simons, of Auckland, said.
"The dry climate here is wonderful as dry air is good health-wise and Bannockburn is the perfect location," Mrs Simons said.
Fundraising for the project had been under way for about two years and fundraising ventures included a stage show which toured throughout the country.
The camping ground managers, Steven and Martine McDowell, had "welcomed us into their family" and leased them a site with million-dollar views, she said.
Many organisations and trusts had helped with funding and the Cromwell, Alexandra and Wanaka Lions Clubs were helping with fencing and landscaping around the site.
"We feel like they've adopted us, too."
The home can sleep up to seven people, is low maintenance and wheelchair friendly.
A Christchurch family will be the first to stay at the Bannockburn home.
