Around the centre of Dunedin, your feet will prove to be the best mode of transport. Walk the historic streets, appreciating the architecture as you go. A rental car will allow you to explore the Otago Peninsula and the coast. Traffic is pleasantly unhurried in any direction.
By Road:
Dunedin is situated on State Highway 1, which runs from Christchurch in the north and Invercargill in the south.
Road conditions are excellent with good quality, uncongested roads. A few gravel roads exist in rural areas.
Coach services to Dunedin include Bottom Bus, Kiwi Experience, Magic, Stray Cats Southern Link, Atomic Shuttles and Intercity.
Driving times to major cities and towns:
Dunedin is a very compact city, but it is also hilly. Occasionally in winter, ice and snow can make driving a challenge on some Otago roads.
All the major rental car companies are represented in the city. It's easy to collect a rental car from the airport.
Distances to places of interest in Dunedin are not great, so taxis are reasonably cheap by New Zealand standards.
A number of tour companies can help you to experience Dunedin city and Otago Peninsula without the hassle of driving. You can choose a structured tour with a set itinerary or you can hop on and off at various attractions around the city.