The facility, Onkaparinga Lodge, has been developed by Southern Cross Care (SA) Inc., the largest provider of residential aged care in South Australia.

The Australian Government recognises the increasing prevalence of dementia in our ageing society and has made dementia a national health priority.

"I am pleased that more facilities are available which have been specially designed to care for residents with dementia," Ms Bishop said.

Construction of a further stage, providing another 20 places is due to commence early next year. Ultimately, Southern Cross envisages the site will accommodate 108 residents and will cost around $12.5 million.

Ms Bishop has opened a number of new homes in South Australia over the past two years to meet demand and she congratulated Southern Cross Care on building another outstanding aged care home, reflecting the high standards of quality and care required by the government, in line with community expectations.

"The development is a significant boost for aged care facilities in the area, particularly the new dementia-specific accommodation," he said.