Aquino said the commission would have investigative powers and other state agencies, including the justice department and the anti-graft Ombudsman, would help to investigate President Gloria Macapagal Arroyo and her government.
"This truth commission is the commission I promised the people we will set up to put closure on so many issues," Aquino told a media conference the day before he will be sworn in as the country's 15th president.
"They will be collators of data, evidence, the proof as to who committed what and what transgression of our laws was committed."
Aquino had campaigned on an anti-corruption platform, which struck a chord with the electorate.
Arroyo's government was hounded by strings of controversies, including that she rigged the 2004 presidential poll and that her family and political allies benefitted from government deals. She denies any wrongdoing.
Last week, the co-founder of Transparency International urged Aquino to jail corrupt officials and seized their assets to show it is serious about taking on the endemic corruption that has hobbled its development and investment.
Aquino, who will take oath as the country's 15th president on Wednesday, also unveiled his Cabinet on Tuesday.
More than 1,000 police officers have been deployed to secure his inauguration at Manila's seaside Rizal Park, which was designated a no-fly zone.
In a news conference on Tuesday, Aquino introduced his Cabinet, which included loyal supporters and former Cabinet members of Arroyo who broke off from her government when she faced vote-rigging allegations in 2005.
He named as his Defense Secretary retired Gen. Voltaire Gazmin, who headed the elite force that secured his mother, the late President Corazon Aquino. Gazmin defended his mother's government against at least seven coup attempts.
Foreign Secretary Alberto Romulo was the only Arroyo Cabinet member to retain his post. A close Arroyo backer, Romulo surprised many when he announced his support to Aquino before the May 10 elections.
Aquino, a 50-year-old economics graduate, said he will temporarily lead the Department of Interior and Local Governments, which controls the national police and local officials.
Aquino and his mother had called for the resignation of Arroyo, who survived four coup attempts and opposition impeachment bids over allegations of corruption, vote fraud and human rights abuses. His campaign promise to investigate Arroyo has been seen as a potential political flash-point early in his six-year term.
Teresita Deles, who was named Aquino's peace adviser, said she will form separate negotiating panels to pave the way for the resumption of peace talks with communist and Muslim guerrillas.
"It is very clear that peace will not be made just on the table. There has to be development, there has to be good governance," Deles said.
Arroy will move on to the House of Representatives where she won a seat in the May 10 election.
Aquino will inherit a small Southeast Asian nation, which has been grappling with poverty, corruption, armed conflicts and deep divisions for decades. On the eve of his rise to the presidency, Aquino said he felt anxious but confident the millions who voted him will back him to confront those problems.
