The site was blessed by Ngati Kahungunu kaumatua Jerry Hapuku on Wednesday, clearing the way for work on the village to begin.
Hapuku joined with the Ryman Healthcare team for a karakia, acknowledging the ancestors of the area and called on divine protection for the construction team building the new village.
As well as creating construction jobs, the village will provide more than 100 long-term sustainable jobs for Hawke's Bay locals.
Project manager Matt Smith said the construction team would number more than 300 when building was in full swing, and the aim was to get everyone home safe to their families each day.
"It means a huge amount to us to have this blessing. We couldn't think of a better way to start the project.''