The Highlanders will take on the Blues in the town on January 29, one of three pre-season warm-up matches they will play.
The Highlanders will also take on the Chiefs in Taupo on February 5 and the Crusaders in Oamaru on February 11.
Their first game of the expanded competition is against the Hurricanes in Wellington on February 18.
Highlanders general manager Roger Clark said playing in Balclutha was a chance to take the game out into the province and was also relatively cheap.
The Blues would fly into Dunedin, travel to Balclutha and return home all in the same day.
The Highlanders could also travel down and back in one day.
No pre-season Super rugby game had been played in Balclutha before, so it would be a chance for South Otago residents to have a look at franchise rugby close up, he said.
A warm-up game had been mooted for Queenstown but cost ruled that option out.
All eight of the Highlanders' home games would be played at night this season, and as there were no lights at the ground in Queenstown, they would not be seen playing in the resort this year.
The Highlanders had just two warm-up games last year, one of those a trek to Fiji, so having three matches against New Zealand sides was an immediate advantage over last year, Clark said.
The team was looking at having a couple of camps in Central Otago and Te Anau as it tried to re-engage with the rugby community in the South, he said.
It was important for the team to start building an identity, he added.
The 32-man Highlanders squad would be named next Wednesday, but the side would not assemble until December 13.
The coaching and management squad would get together on November 15 and start planning for the season.
Clark said the late assembly time in December and a two-week break over Christmas did not leave much time for what would be a new-look squad to prepare for the season.
"But that is just the way it is and we have to deal with it. Coaches always say they need to have the players for much longer, whatever time they get."
Some Australian Super sides have already started training for next season.
Of the eight home games in the competition, six matches would be played at Carisbrook, while the other two would be played in Invercargill.
Venues and games were yet to be finalised but the first home game for the Highlanders - against the Chiefs on February 25 - was likely to be played at Carisbrook.
