His Wattie's business made the best of Hawke's Bay produce and created thousands of jobs, contributing to the economic prosperity of Hastings, the wider bay and New Zealand.
Caren Wattie, Sir James' granddaughter, said it was great to see him honoured.
"We're really proud of our grandfather's legacy and thank Ryman, EIT and the Hawke's Bay community for honouring him in this way. We hope the scholarship will inspire those business students to go forward as entrepreneurs and help grow Hawke's Bay.''
Ryman Healthcare corporate affairs manager David King said it was an honour to name the village after such a significant Kiwi.
"Sir James started out as a messenger boy at the Post Office and went on to become one of New Zealand's greatest business success stories. His story is all about hard work, great vision and tenacity.
"He had huge success with Wattie's, but he never lost sight of the fact he couldn't have done it without the backing of his suppliers and his team. He gave a huge amount back to the community and it is our pleasure to remember him in this way.
"The suggestion came from our residents and the community – and we are sure that the James Wattie Retirement Village will soon become a Havelock North landmark.''
Construction of the new James Wattie Retirement Village began in 2019 and its first residents are due to move in later this year.
The village will offer a full range of retirement living options with care tailored to each resident's needs.
The village will include town houses, serviced apartments as well as a care centre with resthome, hospital and dementia-level care options.
