The government has announced plans to open Canberra's first publicly operated crematorium at the Gungahlin Cemetery.
City Services Minister Chris Steel said during recent consultations, a strong view was put forward that cemeteries and crematoria services were a public service and should be provided by government.
He said some religious groups in Canberra did not currently have their needs met when it came to burial and cremation - in particular Hindu, Sikh and Jain communities.
"One in ten people who responded to consultation said services weren't meeting their cultural needs," Mr Steel said.
"Our city is growing and it is also becoming more diverse so we are investing in a new facility now to meet community needs.
"We're committed to ensuring that all Canberrans can access cemetery and crematorium services. We have a vibrant multicultural community and it's important that people have access to the services they need here, rather than having to travel interstate."
The ACT is currently the only state or territory in which its primary cemeteries do not perform cremations. It has one privately owned crematorium - Norwood Park Crematorium - that serves a population of about 425,000.
The ACT's current cremation rate is 75 per cent - one of the highest in the country. Chair of the Cemeteries Authority Stephen Bartos said it received a number of complaints about long waits and timetabling issues at Norwood Park.
"The ACT can clearly cope with having two crematoriums running side by side," he said.
It comes as the government continues to consider its response to an investigation into ashes that went missing from Norwood Park.
Kanti Jinna, who is on the Cemeteries Authority board, said Hindus in Canberra were often forced to wait longer than culturally appropriate due to current demand.
He said there was also no way to legally scatter ashes in water which will go to the sea locally - an important part of Hindu culture.
As a result, some people were breaking the law or travelling to Sydney or beyond.
"People do make do but if you can have it within Canberra it would be even better still," he said.
The government recently undertook a market sounding for a new cemetery - which would include a crematorium - in Southern Memorial Park.
Mr Steel said there was room in the market for three to four crematoriums.
The Independent Competition and Regulatory Commission will set prices at the public crematorium and competitive neutrality principles will be applied.