Chris, who declined to give his surname, said he and his children William (8) and Dexter (6) had wanted to have a ‘‘little calm cruise’’ on Saturday afternoon.
The trio was about 200m from shore when wind gusts from various directions tipped the boat, which started taking on water, he said.
He was unable to balance it and they lost their bailer, leaving them with only a bottle to deal with the water.
The boat remained buoyant so Chris put the children inside and started swimming to shore with it.
Emergency services helped him get the children ashore and tow the boat for the last section of its journey.
He was grateful for the help, although the group was never in any serious danger, Chris said.
They had good wetsuits, life jackets and a marine radio, which he credited with helping in the positive outcome.
Their next boating trip would be on a lake, Chris said.
Fire and Emergency New Zealand Station Officer Josh Spence, of Dunedin City Station, said his crew was heading out to Company Bay for breathing apparatus training when they saw the stricken dinghy about 40m from the Andersons Bay causeway at about 2pm.
The fire engine turned around and stopped to help, SO Spence said.
He was pleased with the safety measures the group had taken and encouraged all sailors to wear life jackets and carry two forms of communication.
Dunedin Marine Search and Rescue chairman Martin Balch said the party did everything right except for perhaps misjudging how windy the conditions were.
Wind gusts had picked up after a calm morning and Otago Harbour was notorious for its breezes, which could be difficult to sail in, Mr Balch said.
Police attended, while Coastguard and surf lifesaving personnel were stood down before they arrived.
A St John spokesman said it treated three patients with minor injuries at the scene.
