A $170,000 hot air balloon called the Skywhale has been unveiled to mark Canberra's centenary.

At 34 metres long and weighing half a tonne, it is at least twice as large as a standard hot-air balloon.

It took 16 people seven months to make, using more than 3.5 kilometres of fabric and 3.3 million stitches.

It can carry a pilot plus two passengers to an altitude of 3,000 feet.

But Canberrans are divided over the balloon's design, with Twitter users and talkback callers to 666 ABC Canberra expressing dismay and delight.

Artist Patricia Piccinini says her inspiration came from the wonder of nature.

"My question is what if evolution went a different way and instead of going back into the sea, from which they came originally, they went into the air and we evolved a nature that could fly instead of swim," she said.

"In fact coming from a place like Canberra where it's a planned city that's really tried to integrate and blend in with the natural environment, it makes a lot of sense to make this sort of huge, gigantic, but artificial and natural looking creature."

Ms Piccinini says she understands the artwork will challenge public opinion.

"I think that's confounding for people because they don't know what the creature is, but secondly they don't know if it's an artwork or what it's trying to do," she said.

Ms Piccinini says the large breasts reflect how whales are mammals and breast-feed their young.

Centenary of Canberra creative director Robyn Archer says she wanted to offer the commissioned highly visible canvas to an Australian artist.

"Patricia Piccinini is one of Australia's most successful sculptors," she said.

"Her work is seen in major collections in Australia, she represented Australia at the Venice Biennale and a survey show broke all attendance records for the Tasmanian Museum and Gallery.

"Many special-shape balloons have started to replicate characters or animals, but they are mostly caricatures and in the realm of kitsch, rather than art."

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But the imaginative work has divided the ACT's politicians.

"There will be people in the community who think it's a great achievement to have won a commission like this in the ACT and have it as a symbol of our centenary and those who won't see it as value for money," Chief Minister Katy Gallagher said.

Opposition Leader Jeremy Hanson says the Government is out of touch with community values.

"It seems that this Government's priorities, and Katy Gallagher's priorities are just not consistent with the values of this community," he said.

"$170,000 on a whale shaped hot air balloon - incredible."

ACT Greens MLA Shane Rattenbury says the balloon is unusual and he does not see the connection between whales and Canberra.

The Skywhale will be tethered near the National Gallery of Australia (NGA) on Saturday as part of the Sculpture: Space and Place symposium.

On Monday it will make its first flight over Canberra.

The Skywhale will travel to the Museum of Old and New Art (MONA) in Tasmania in June and the work will be presented at the Australian Centre for Contemporary Art in Melbourne later this year.

The Centenary of Canberra also hopes the balloon will appear at galleries and festivals throughout Australia, acknowledged as being commissioned for Canberra's centenary.

The balloon was partly funded by the Aranday Foundation.