Up to 60 families will live in a long line of trailers on a 40-hectare piece of land in the Saddlebrook neighbourhood north of the town.
They will join about 200 single people who already call the trailer complex home.
"This is a positive step forward for these families who have been out of their homes for so long," said Rick Fraser, Alberta's associate minister of regional recovery and reconstruction.
Several hundred people lost their homes in the flood in June and ended up living at student residences in Calgary and Lethbridge.
People displaced by the floods have the option of moving into temporary housing or making their own arrangements. They are to receive their accommodations rent-free for the first 90 days.
The family trailers include a living room with a sofa, chair and television. There are shared laundry facilities and a simple bedroom with a closet.
More basic units have a bedroom and a shared bathroom.
Amenities at Saddlebrook include three restaurants, recreation and playground areas, housekeeping, and medical support.
Saddlebrook community was the first temporary neighbourhood to open.
Temporary relief housing recently opened in the Siksika First Nation east of Calgary until a temporary neighbourhood is ready for that community.
Other temporary neighbourhoods are being considered near the Municipal District of Bighorn, Calgary and the Stoney Nakoda First Nation.
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