Minister for Government Services and Building Industry Simon Finn opened the $1.7 million unit complex when he was in the city yesterday.

The complex is home to three two-bedroom units and one three-bedroom unit available for families or singles working for Queensland Health.

Each unit is air-conditioned and contains a single garage.

Mount Isa Health Service District executive director of corporate services Barbara Davis said the units would be available to the chosen tenants permanently in an effort to retain staff in the region.

"We're certainly looking at keeping the tenants there permanently and trying to retain them," she said.

"The number of people in the rooms will depend on if it is a family or singles moving in but if people are sharing we try to get them to choose their own flatmate and we know that dynamics can change, it's not necessarily people from the same or certain departments together."

Ms Davis said allocation had not been finalised yet but tenants were expected to move in within a fortnight once the keys were handed over and units furnished.

"The allocation will be on a priority and entitlement basis.

"Some are critical and others have it stated in their award they are entitled to accommodation," she said.

The Miles Street complex is part of the Bligh Government's government employee housing scheme.

Minister Finn said the project was also a "wonderful boost" for the building and construction industry.

He said the complex would remain owned and operated by the Department of Public Works and leased to Queensland Health for an initial five year period.

"The Government Employee Housing Scheme supports the transfer and retention of staff with required skills and qualifications to locations dictated by service delivery needs," Minister Finn said.

"It also ensures the provision of housing in areas where there is a recognised shortfall in private rental accommodation."