The affordable housing was built remotely, brought in by lorry and put together on land west of Kinoulton Court, Grantham.
The modular format creates energy-efficient new homes that have lifetime home features, making them fully accessible and easily adaptable for additional needs at minimal cost. The project can take half the time of a traditional build.
The ten one-bedroom units will shortly be available to people on the housing register. They form part of SKDC's commitment to deliver good quality social housing across the district.
The Leader of the Council, Cllr Kelham Cooke, said: "Affordable housing is in short supply across the country and South Kesteven is no exception. This is an ambitious new-style development providing homes for those who need them most.
"It is the first of several new developments SKDC has in the pipeline to meet demand as part of our £60m investment in new housing over the next five years. This will include sites for more new builds to provide more than 500 homes for local people on our housing register.
"We are building new homes in a range of different ways and this modular housing project is unique for us in that it is not a traditional onsite build.
"It's great to see these much-needed homes being lifted into place after our property development team identified the need, won approval for the plans and sourced the modular designs."
Premier Modular produces each entire module off-site before transporting to Grantham for installation. Once on site the brickwork cladding, roofing, and the finishing touches to the exterior frames are completed.
A similar project for four homes is under way at Earlesfield Lane, also in Grantham.
"We are creating a better quality of life for our residents, which is part of our vision for the future of this district," Cllr Cooke added.
"As we move forward with these building projects in Bourne, Market Deeping, Stamford and Grantham, we are focusing on individual homes and small to medium developments rather than the large council estates built in the past."