Lionel and Joan Smith bequeathed the two bedroom townhouse to the not-for-profit organisation to provide accommodation to patients accessing treatment at Central West Cancer Care Centre.

The donation was the wish of the late Mrs Smith, who occupied the house after her husband Lionel died from bowel cancer in 2004.

Their daughter Lorraine Miller said her mum had always supported cancer charities, so when she suggested donating the house both her and brother Terry Smith had supported the idea.

"I said 'go for it - it's a good thing. It's your wish, you do what you feel is right'," Mrs Miller said.

Located on Booth Crescent, the house has undergone significant renovations and upgrades, including a kitchen fitted out with new appliances and a lounge room and two bedrooms with new furnishings.

Through donations from local businesses, the house now has the capacity to accommodate up to seven guests for stays of up to six-weeks.

The Cancer Council's Ricky Puata said donations came from grants including Dry July, Tour de Cure and the Community Building Partnerships, as well as fundraising events such as Relay for Life, Dancing With the Stars and Australia’s Biggest Morning Tea.

Through the government's travel and accommodation scheme, eligible families will stay in the house for free.

For those ineligible for the scheme, the accommodation will cost $60 per night for the first week and $85 a night after that.

Mrs Miller said she would love the opportunity to stay involved with the house on behalf of her mum.

"I think she's looking down on us up there sticking her chest out saying 'yes I've done it'," she said.

"I don't think she knew the enormity of what she had done. I think she does now."

Member for Orange Phil Donato thanked the family for their generosity at the official opening of the house this week.

"It's a much needed facility in the Orange area and I'm sure it'll be greatly appreciated by those who use it," he said.

Mr Puata said the Cancer Council is in discussion with a family from Bourke in far west NSW to see if they are eligible to be the first occupants of the house next week.