Chef de Mission Rob Waddell awarded the Canterbury paralympian the honour on Tuesday night during the final NZ team conference before the games started.
Rob Wadell said Sophie represents the values and the culture represented by the New Zealand team.
"What this athlete does transcends sport and touches the hearts and emotions of every New Zealander. She is an inspiration to all people."
He said she will follow in the footsteps of some of New Zealand's greatest sportspeople when she leads the team into the opening ceremony.
Sophie Pascoe said it's very humbling to be chosen to lead NZ out onto the grounds.
"I wasn't considered as a Paralympic athlete, I was considered as just one of the athletes of the New Zealand team so to lead that team out is very special."
The nine-time Olympic gold medalist will compete in the 200m individual medley and the 100m breaststroke.