The CANDLES-III detector was installed at the Kamioka Observatory in Japan to investigate the double β decay of 48Ca. This system combines an undoped calcium fluoride scintillator with a long attenuation length (larger than 100 cm), and a two-phase liquid scintillator, thereby serving as a larger-mass detector of 305 kg (contains 350 g of 48Ca) while maintaining a high energy resolution (σ=2.6% at Q-value of 48Ca double beta decay). Low-background conditions are achieved in the energy region of interest by improving the light yield and collection efficiency of the detector system, allowing to access a high energy resolution, as well as by installing passive and active radiation shielding, and using pulse-shape analysis. This paper describes the details of the detector including its site and data acquisition system and presents its performance characterization.