Kāinga Ora have finished 10, one-bedroom homes in central Blenheim - where there are more than 200 applicants on the wait-list for housing.
Nelson, Marlborough and West Coast regional director Julia Campbell said the new homes, on the corner of Richmond and Charles streets, would help to address some of the urgent need for housing in the region.
There are 216 applicants on the Ministry of Social Development public housing register in Marlborough, with more than half of those waiting for a one-bedroom home.
Campbell said four homes were previously on the Charles Street site before it was redeveloped.
"As part of our redevelopment programme, we're looking to increase the number of homes in Blenheim by replacing some of our older homes on large sections that are past their best with additional warm and dry homes."
The homes are wheelchair accessible with wider doors and level entry access. They have been built to a 6-Homestar rating, making them warmer, healthier and more energy efficient. All of the homes have their own carparks.
Kāinga Ora has 142 new public homes planned in Marlborough to be built before June 2025.