The artist, Alexandra Sides, won the public vote in the Otago region awards last year, and the piece Dundas Street on a Clear Day graced the cover of the 2010 Otago Yellow Pages.
Last night, she beat 17 other regional winners to win the $10,000 top prize for 2009.
Ms Sides has been a student for five years and inspiration for the painting came from the way in which students brought Dunedin to life with their friendly atmosphere.
"I love how when students get involved with things, whether it is sport or study or costume days, and whenever it gets above 17degC everyone carries their couches out into the sun so the whole suburb around the university is like a giant lounge," she said.
The awards, now in their 20th year, gave aspiring artists the opportunity to enter a work of art which best depicted their region.
Yellow marketing director Kellie Nathan said for many of the winning artists the awards were a significant stepping stone in their creative careers and gave them unparalleled exposure.