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The village, which has been operational since February, was formally opened by Dunedin North MP David Clark.
A mihi and waiata were held to welcome guests into the building.
About 60 staff, students, polytechnic council members and Dunedin City Council representatives attended the event.
The $22 million, 231-bed residential village has a mixture of fully-catered single rooms, self-catered studios and four-bedroom apartments. Dr Clark said the establishment of the village was a landmark occasion.
"Events like this don’t happen every day; this is a pretty significant day for the city," he said.
"You will all know what an amazing reputation this polytechnic has across the country."
The design of the building has received several award nominations, including from the New Zealand Property Council.