It's located in Phoenix Place, which is Habitat for Humanity's newest Chapel Hill neighborhood.
Fraternity brothers say they wanted to honor Smith's leadership and service, and remember him in a positive way.
They also say the playground reflects Smith's love of children.
Smith's parents traveled from Texas for the dedication, and say seeing everyone come together has helped them heal.
"It's overwhelming, to be honest," said Pharr Smith, Courtland's father. "Just all of the goodness, and to talk to the people who live here and are trying to make this a community," he said.
Volunteers have already built a Habitat House in Chapel Hill in Smith's memory.
Fraternity brothers and their families raised more than $70,000 for the home.