The $27 million project will see the Tatton aged care centre completely redeveloped on-site, with the current facility set to be demolished and turned into a garden upon completion.

The construction milestone was marked on Tuesday morning by 86-year old Caloola resident, Louis de Kort, turning the first sod.

He did so alongside Wagga mayor Greg Conkey and the teams from BaptistCare and Lipman, who are leading construction efforts.

The new purpose-built facility will feature 80 beds divided between five distinct households, part of a new model of care BaptistCare is rolling out.

"[It will be] the most home-like environment that we can provide them," residential manager Melissa Noble said.

Each unit will feature its own private ensuite, and each home will have its own family room, dining room, kitchen and breakout spaces for residents to share and make their own.

There will also be a main, front-of-house area with a cafe, hairdresser and various other services for residents and their families to make the most of.

The five homes are not separated by level of care, however there will be a dementia-specific home. Large, expansive gardens will also be key to the redevelopment, with hopes to even house farm animals on-site.

"We've just been through a pandemic ... so it's to a new level of being able to control infectious diseases," BaptistCare CEO Charles Moore added.

Works will begin this month, with plans for a 2023 opening. The existing centre will remain open while construction takes place, and there will be a transition phase when residents move to their new homes.

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"We are going to do everything in our power to avoid disruption," Mr Moore said, with some noise throughout construction expected.

The current site used to feature 78 beds but was recently downsized to 55 with the rebuild pending.

"Everyone's really excited [and] looking forward to it," Ms Noble said.

Lipman CEO Rob MacKee said they were "proud" to be entrusted with the redevelopment, having worked with BaptistCare on five previous projects.

"Wherever we work in regional NSW, we are proud to engage local staff and local contractors for our projects as we endeavour to maximise the benefits to local communities," he added.

Cr Conkey said it will be a fantastic project, helping to meet the needs of Wagga's ageing population.

"It is always a great sign to see development taking place in the city," he said.

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