NHILL has been hailed a world leader in refugee resettlement by the United Nations.
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Adult Migrant English Service settlement and asylum seeker programs general manager Ramesh Kumar said the success of Karen refugees settling at Nhill was remarkable.
He presented the successful integration of more than 150 Karen refugees to the United Nations refugee agency, where it was met with amazement.
"I spoke about this at the UNHCR in Geneva to people from about 88 settlement countries and they couldn't believe this could happen," Mr Kumar said.
"I've met with people from all over the world who do resettlement.
"This story is just unique and Nhill should get that credit."
Thirty-five Karen people became Australian citizens on Wednesday night.
Hindmarsh Shire Council's Karen Community Plan was also launched at the ceremony.
Mr Kumar described the community plan as exemplary.
"This is just a dream come true that people who have been estranged from their own land now call Australia home," he said.
The citizenship ceremony at the Nhill Memorial Community Centre saw a record 35 Karen naturalisations, alongside one from India and one from Ethiopia.
More than 200 people attended the ceremony, which included Karen food, dancing and speeches made in both Karen and English.
Hindmarsh Mayor Rob Gersch said he was extremely proud of all the shire's residents.
"It's a fantastic night to be involved with 37 naturalisations and see the smiles on their faces and how proud they are," he said.
"I believe with our multi-culturalism that Hindmarsh is a trend-setter for a small community town and we're very proud."
Cr Gersch said the Karen population had culturally enriched the town, as well as provided a workforce that had saved businesses.
Karen refugee Doh Ta Gay said he felt 'awesome' to be an Australian citizen.
Mr Kumar said Karen refugees had suffered unimaginable persecution. "These are people who have lost their homes, they have lost their homeland and they've almost lost their identity," he said.
"They have lived in refugee camps for 30 years and kids who are born in the refugee camps have come to Australia as 30-year-olds.
"To regain their identity, their dignity, their sense of freedom and being able to be human beings - it's a big achievement."