Lisa Dick said the bus stop, which extended into the new shared Dunedin-Port Chalmers pathway at St Leonards, was "shockingly dangerous".
"As you can see, the lines of the bus stop have been painted across the shared pathway," Ms Dick said.
"The idea of having the shelter on the shared path — making bus passengers wait in the way of cyclists — was already concerning, but to ask buses to actually drive on to the path is crazy."
She was worried about visibility issues, Ms Dick said.
"It seems really surprising that on a cycleway that they have invited a bus to pull right on to it and park on it. I’m concerned for the bus passengers, but also cyclists," she said.
"It’s incredibly dangerous and incredibly surprising."
Waka Kotahi senior project manager Jason Forbes said several options had been investigated for the bus stop, but only two were viable — either allow State Highway88 traffic to back up every half hour behind a stopped bus, or create enough space using part of the 3m-wide shared path for the bus to pull off the road.
"The second option is the better and safer outcome given the limitations and constraints on this site," Mr Forbes said.
"This is a shared path, which means cyclists and people using it need to give way also and work around the bus passengers and the bus at that point.
"The project has already moved the rail line over towards the harbour edge as much as it can go, away from the highway, to create the greatest available width," he said.
Before the shared path was constructed there was a bus stop at the site and users had to stand on the highway shoulder, Mr Forbes said.
Safety works were not yet complete in the area.
"The project will see a right-turn bay installed for safer access into St Leonards Dr and a pedestrian refuge [crossing island] installed in the middle of the highway, to safely connect the St Leonards community for both the path and bus stop users."