Students from more than 250 schools have submitted more than 9,000 "creative masterpieces" ahead of the Games, with secondary and primary pupils involved.
The work they created features athletes, sports and various moments from Olympic history.
Australia's Rio Chef de Mission Kitty Chiller said the artwork would inspire athletes and let them know they have the support of the entire country.
“The amount of artwork we have received is incredible,” Chiller said.
"All of the artworks are magnificent and incredibly inspiring, with students taking the time to write their own ‘good luck’ messages to Olympians on the back.
“We hope that when all of the athletes walk into their bedrooms, they feel at home, comfortable and ready to represent Australia as well as they can.”
The AOC has run the Village Art scheme at every Summer, Winter and Youth Olympics since their home Sydney 2000 Games.
There were 2,000 pieces from 35 schools on the walls in the London 2012 Athletes' Village, meaning that the Rio numbers represent a large increase.
It won’t be just the Village that is lined with artworks, with the athletes staying in Ipanema Towers at Copacabana Beach and in Marina de Gloria also having their bedrooms decorated.
Art will also hang in "The Edge" - a space away from the Village where Australian athletes can relax and meet family and friends.
Chiller will select the best primary and secondary artworks to receive a prize thanks to Australian Olympic team partner, Woolworths.
"It’s fantastic to see our partners also supporting this fantastic education initiative,” Chiller said.
“I’m excited to walk through the Village and pick my favourite artworks, although that is not going to be an easy task.”
The Rio Athletes' Village will open tomorrow.