The Bendigo & District Aboriginal Co-Operative (BDAC) launched its new early years facility, named djimbaya, on Thursday morning.

It marked the culmination of two years of intensive efforts to create a space with a strong focus on Indigenous culture, BDAC chief executive Dallas Widdicombe said.

"It's a mix of Aboriginal and non-Aboriginal children ... about 90 per cent Aboriginal at the moment," he said.

More news: Food chain eyes High Street's old Pizza Hut site

"We've had a lot of Aboriginal Elders advice on the curriculum.

"A lot of the resources we will use are made out of native resources, so a lot of bark, trees and things for kids to explore."

BDAC began planning the kindergarten years ago after a review found there were not cultural offerings in the early education space.

The new kindergarten will do more than immerse young children in a rich Indigenous culture, Mr Widdicombe said.

"We are a health and wellbeing organisation," he said.

"If we can create connections with young people at an earlier age, we feel that health and wellbeing outcomes will be a lot better for our community."

The facility will eventually house 90 children but for the moment enrolments are hovering around 30.

The kindergarten was stage two in a wider plan for BDAC's North Bendigo site.

The service recently asked the council's permission to build a new allied and community health building at the site.

"We are currently on two sites and will be on three by the end of March," Mr Widdicombe said.

"The new building would allow the majority of our people to be on the one site. We are just out of room."

Digital subscribers now have the convenience of faster news, right at your fingertips with the Bendigo Advertiser app. Click here to download.