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I am DPOA for my aunt, who has dementia. She does not have a living will. Can I create one on her behalf? If not, can I assign a surrogate to make health care decisions in my absence?

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You don't even have the authority to act on her behalf medically unless you are talking about a DMCPOA.
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No, you cannot. But as her DPOA you can make health care decisions just as you can make other decisions if no MPOA had been designated. You can do anything that is mentioned in your DPOA, so read that document. If there is no other next of kin of family member other than yourself you would be the medical contact for your Aunt. She has dementia, so she cannot create her own living will (or Advance directive, as it is better known). And you cannot make one for her.
Your DPOA may already have language in it allowing you to make health care decisions. Read the document to check.
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A living will documents the care a person wants at the end of life. A durable medical POA names someone to arrange for and make decisions regarding health care when the person is no longer competent to do so. The living will guides the MPOA agent through the person's end-of-life decisions.

AlvaDeer is right. Read the POA document itself to see what powers your aunt granted you. The POA may include end-of-life instructions. If you are worried about being temporarily unavailable, check to see if the POA allows you to turn over all or part of your duties to someone else. Look for wording that talks about delegation or reassignment of duties.

Laws vary from state to state, so check on the POA laws in the state where your aunt resides. Some states appear not to allow delegation.

If you're not available, the physician and health care team will usually turn to your aunt's most appropriate decision-maker from close family or friends to make end-of-life decisions.
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A living will isn't worth the paper its written on. It isn't a legal document; it's an "I want my ashes sprinkled at Disneyland" document that people can honor or not.

An advance medical directive is a legal document, and no, you can't create one for someone else.
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You don't have Medical POA? My Moms read like a living will. It said what she did or didn't want.
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