McKeown Group Ltd says work started on the station about two and a-half weeks ago and it could be ready in about a month.
The station is being set up at 46 Main Rd, next to the Fairfield tavern reserve.
Southern Paper Products most recently operated from the site, but before that a service station had been there with a forecourt and canopy since about 1952.
McKeown Group managing director Ken McKeown said an opportunity came up to buy it and "tidy it up".
"[We] recognised it was probably a quite suitable area for us. It’s an area of the town that’s not well serviced.
"We’ve had a lot of people wanting a site out there."
The closest station to Fairfield is Z in Green Island.
The self-service station will operate 24 hours a day, seven days a week. No staff are expected to be at the station apart from visits for maintenance.
The Fairfield station will be the company’s fifth in Dunedin. It also operates two Caltex stations.
As part of construction and according to the company’s resource consent application, three underground tanks will be installed along the western side of the site.
Two double-sided pumps will be installed, allowing for four fuelling points.
The underground fuel tanks will consist of one 50,000-litre diesel tank and two 40,000-litre tanks, for 91 and 95 petrol. The area above the tanks is to be sealed.
The site received consents in 1947 to build a commercial garage, in 1964 to build a service station and in 1981 to put up the canopy.
