The minister apologised in the ACT Legislative Assembly for the miscommunication which led Aboriginal health provider Winnunga Nimmityjah to walk away from the $12 million project.

Winnunga chief executive Julie Tongs last month accused the government of spending millions of dollars on a "camp site" after it was revealed medical treatments would not be offered at the farm near Tharwa, in part because the zoning of the site prohibited it.

Health officials later admitted they were not "clear enough" with Ms Tongs about the inability to run clinical services at the farm.

Instead, clients with medical needs would be taken into town to see a doctor, although the details were yet to be finalised, Ms Fitzharris told The Canberra Times.

She said clients would only be able to attend the farm once they had completed another alcohol and other drug rehabilitation program.

While the activities that will be undertaken the farm are still being debated, Ms Fitzharris said the farm would have a "phased opening" in August - begin offering services only during the day and expand to a residential facility over time.

"Ultimately, the purpose of the Ngunnawal Bush Healing Farm is to provide a place of healing, whereby Aboriginal and Torres Strait Islander peoples will feel safe and supported by the traditional custodians, community leaders and elders, respected role models as well as cultural healers to make ongoing and meaningful changes in their lives, and to break the cycle of drug and alcohol dependency," Ms Fitzharris told the assembly.

Canberra Liberals' health spokeswoman Vicki Dunne accused the Barr government of "revisionist history".

Their Indigenous affairs spokesman James Milligan called on the government to apply for a lease purpose variation to give the community what it "wants desperately, in fact they say urgently, a drug and alcohol residential rehabilitation centre in the ACT".

But Ms Fitzharris said it was clear from the outset the farm would complement, not replace, existing drug and alcohol rehabilitation services.

ACT Health also hosed down claims the farm had strayed from its original purpose.

They pointed to the ACAT decision of 2014 that allowed the farm to go ahead which quoted co-chair of the United Ngunnawal Elders Council Roslyn Brown as saying it would "not be a place to detoxify or provide medical treatment for drug and alcohol addiction … we will be working towards healing the mind, body and soul and opening a new world view for our youth".

Ms Brown has not responded to repeated requests for comment.

The ACT government spends $18 million each year on drug treatment and support services, ACT Health figures show.

There are 60 residential drug and alcohol rehabilitation beds in Canberra through Karralika Programs, Directions ACT and the Ted Noffs Foundation.

The Salvation Arm also operates 55 drug and alcohol rehabilitation beds in the ACT.

Health provides $1.186 million per year to Winnunga and Gugan Gulwan n specifically for alcohol and other drug treatment services, including outpatient withdrawal and assessment services.

"A whole range of services already exist in the community and the Ngunnawal bush healing farm was certainly ... supposed to be something new and unique, not to replace existing services but to add something based on healing, based on connection to land and culture and other services which break the cycle," Ms Fitzharris told the Canberra Times.