Adoption is a new feature in Fable III. Children can be adopted allowing same-sex couples to start a family, unlike Fable II when you could only get married. Homosexual couples, heterosexual couples and even single parents can all adopt children. The achievement Adopt or Die is earned for adopting one of the homeless children.
The Adoption Centre is in The Bowerstone Industrial Orphanage and Homeless Shelter. The player can adopt a baby or child for the price of 500 gold. After adoption, you can choose where you want your new child to live. If no spouse is present at the location, a nanny will be hired. Your own children (both biological and adoptive) will be sent to the orphanage if your spouse dies or divorces you. You are free to regain custody of your child at any time, but you must still pay the 500 gold adoption fee. When you re-adopt a child, it adds to your current children, so if you re-adopt your only child, it would say you have two children.
Adopted children can be placed in the same home as your spouse and a nanny will not be required. Some properties do not allow this option.