The single-decker bus will target young people in the Craigentinny, Northfield, Portobello and Restalrig areas of the city.
Facilities on the bus include DJ decks, a PlayStation and sports equipment.
The project is also recruiting a team of volunteers to help reach out to local young people and get the wider community involved.
It is backed by 185,000 from the Community Fund, Edinburgh City Council, the Robertson Trust and the Tudor Trust.
In addition, Lothian Regional Transport is providing driver training and bus maintenance for the next three years.
Community education worker Gary Coleman, who is helping the Youth Bus Group to get the centre up and running, said: "The project grew out of problems near my community centre in Northfield. There was a lot of vandalism and antisocial behaviour and local residents calling the police about groups of young people."
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