Supporters of the Freedom and Rights Coalition (FRC) marched down Princes St at 11am on Saturday and were intercepted by over 100 supporters of AntiFascist Ōtepoti.
The FRC is known for being associated with Voices for Freedom and Destiny Church. One of the leaders is Derek Tait, a Destiny Church pastor.
Counter-protesters took the top of the Octagon, while supporters of the FRC claimed the bottom half.
Ahead of the event, AntiFascist Ōtepoti spokeswoman Sina Brown-Davis said the march did not represent the values of the wider Dunedin community.
Mr Tait was close associates with white supremacists and neo-Nazis, she said.
The group was intending to hold a positive and peaceful demonstration to show that the politics of hate and division were not welcome in the city.
Mr Tait denied the allegations that the group were alt-right or fascist.
He said the claim that the group were racist or white supremacists was ridiculous, as he was Māori.
The FRC would focus on conducting a safe, orderly and peaceful march. They would focus on their own message rather than worry about what AntiFacist Ōtepoti were doing, he said.