In an effort to stop cigarette butts entering stormwater drains and littering the environment, the organisation, in conjunction with the Dunedin City Council, has installed 20 cigarette-butt bins around the Octagon.
A Dunedin firm was contracted to design a steel tube to sit inside the existing green rubbish bins to catch cigarette butts.
The inserts, which cost $250 each, are emptied daily along with the rubbish bins.
Keep Dunedin Beautiful co-ordinator Darlene Thomson said the bins appeared to be a hit with smokers and non-smokers alike.
"We hope to see more of these installed in the coming years," she said.
Dunedin becomes the second city after Auckland, which trialled a pilot scheme in 2006, to install the butt bins.
Queenstown would be next, Keep New Zealand Beautiful chief executive Simon Johnston said.
"We believe that smokers will respond positively and dispose of their cigarette butts more responsibly."
