Lilliard Gin is based at the Born in the Borders visitor centre in Jedburgh.
It comes ahead of a number proposals, which are at various stages of the planning process, to open the region's first whisky distillery since 1837.
Lead distiller Kate Macinnes said the potential to make the Scottish Borders a "region of distilling excellence" was "really exciting".
"Our gin production is on a completely different scale to the other distilleries in development," she said.
"Our still is one of the smallest production stills in the UK, and our entire operation fits into a cowshed, but if people like our gin, that's all that matters.
"We have a rich abundance of wild food on our doorstep in the Teviot valley, and Lilliard Gin aims to capture that and convey a true sense of the local flavour palette and our Borders 'terroir'."
John Henderson, of Born in the Borders, said the gin distillery was a natural companion to the Scottish Borders Brewery on the site.
"To be able to play host to the first new distillery in the Borders in nearly 200 years is incredible," he said.
"And the fact that Lilliard Gin are looking to use Borders botanicals means they are completely in tune with our own ethos of local sourcing.
"We just can't wait for them to get started, and to taste their gin."
The gin takes its name from a legendary Borders figure.
"Lilliard was the heroine of the Battle of Ancrum Moor in 1545, fought just north of the distillery," explained Ms Macinnes.
"Lilliard reputedly fought to avenge the death of her lover at the hands of the English. The battle site is also known as Lilliard's Edge.
"We wanted a name that reflected our landscape, and our strong female production team, and Lilliard seemed like a natural choice."

Kiel Hauley, 33, Jonas Marcius, 23, and Adrian Morley, 33, deny assaulting and murdering Craig Grant, of Inverurie, outside the Galleria shopping centre in August last year.
Witness Shaun Wheeldon said he saw Mr Grant being held on the pavement.
He said he was "shocked" to see Mr Grant's face was light grey.
Mr Wheeldon told the High Court in Aberdeen he could see two men restraining Mr Grant on the ground outside Tonik and stopped to speak to a bouncer.
He said:  "He just said he had been in the club and he was highly drunk."
Mr Wheeldon said there was "quite a commotion" outside the bar with a lot of people standing outside.
Advocate depute James Keegan QC asked: "How did you react when you saw his face?"
He replied: "I was shocked at the colour of him. He was light grey."
Mr Keegan asked: "When you saw the colour of him what did you think?"
He replied: "That he was in a bad way."
He said Mr Grant's friends were trying to intervene when police arrived at the scene because he had shown no response on the ground.
He told the court police took over and tried to sit him up.
He said: "They sat him up like a teddy bear. It wasn't a recovery position."
Mr Keegan asked: "When you say a teddy bear what do you mean by that?"
He replied: "Because he was limp."
The trial continues.
A new gin distillery in the Borders - built in a converted cowshed - is to start production early in the new year.
[NEXT_CONCEPT]
A man was limp "like a teddy bear" after he was restrained by bouncers on the ground outside an Aberdeen bar, a murder trial has heard.