Ms Turei was one of the speakers at a protest against Minister of Local Government Rodney Hide's proposal to change the rules relating to local government transparency and financial management, and the provision of water services.
The amendment would allow local government to enter into water service contracts for less than 35 years, but the bodies would still be responsible for providing water services and retain control over pricing and policy.
Protestors attended rallies against the legislation throughout New Zealand on Saturday.
Dunedin city councillor Fliss Butcher said she hoped the Dunedin protest, which attracted about 60 people, would "wake up" the community and begin a debate about the implications of the legislation.
After hearing the speakers, there was consensus throughout the audience for water services to stay within council ownership, Cr Butcher said.
"I'm very happy to take that message back to other councillors and the mayor."
Ms Turei told the audience Mr Hide's proposal was for an anti-democratic piece of legislation which had in other countries resulted in prices being pushed up 50% and in people being disconnected from water services because they could not afford them.
Cr Dave Cull said the claims privatised services were more efficient, transparent and provided better services were a "self-serving mantra".
"Water is one of the most important strategic assets a community can have.
Why contract that out to private enterprise?"Labour list MP David Parker said losing control of water assets for 35 years was not in New Zealanders' interests.
Water was like roading, schooling and healthcare.
These were all essential services which should be kept within local and central government control, he said.
The public has until June 18 to make submissions on the Local Government Amendment Act, which provides for councils to contract water services to private companies for up to 35 years, from the current maximum of 15 years.
