The units were officially opened by Hepburn Shire mayor Rod May last Thursday.

The project was delivered with funding from Housing Choices Australia on land provided by the Hepburn Shire to build affordable housing for people with a disability.

Housing Choices CEO, Michael Lennon, said: "The shortage of affordable, accessible rental housing for people with a disability is not just a big city problem, as local government authorities like the Hepburn Shire have recognised."

"I am delighted to welcome the mayor here today as we need local government and housing associations to work in partnership to meet the housing needs of people with a disability," Mr Lennon said.

"This housing could not be done without the generosity of council and the policy setting which enabled this to happen."

Cr May said: "This is a heartwarming project and it is truly wonderful to see it has come to fruition."

"These three housing units will have such positive life-changing effects on people with disabilities and we are really pleased that we were able to assist with it," he said.

Council made the land available to Housing Choices Australia through the Disability Housing Trust to help create a housing environment where tenants have a sense of control over how they live and with whom they live.

"Council's interest in the land is secured through a partnering agreement," said Cr May.

"This venture allows people with disabilities to live independently in a custom built home that is close to the town centre, and transport."

The $661,000 development at 79A Raglan Street was built by Ballarat builders JG King.

The two one-bedroom and one two-bedroom homes also feature single carports with a driveway sloped to cater for those with physical disabilities.