Over the evening, people were treated to an array of live music before the countdown to midnight, which was accompanied by a light show projected on to the Regent Theatre and Bacchus Restaurant.
Children were treated to their own countdown at 8.30pm and welcomed the new year with song, dance and a shower of pyrotechnic sparkles.
MC Jesse Mulligan said patchy drizzle had not dampened spirits.
"It’s raining but it’s been a really lovely event.
"I’ve really enjoyed wandering around and meeting, not only people from Dunedin, but people who’ve come from other towns."
He had met some of Dunedin’s new faces — people who were celebrating their first New Year’s Eve in the city.
"Four guys from different parts of Syria who have come down to enjoy the celebrations and see what a New Year’s [Eve] in New Zealand looks like.
"I’ve told them that it’s usually warmer than this, but they’re enjoying themselves."
In the leadup to midnight, he told the crowd it was a night to celebrate together, whether they were born and bred in Dunedin or a more recent arrival.
Stage manager Alex Jones, of Strawberry Sound, said the night had run smoothly.
Police estimated between 2000 and 3000 people were in the Octagon before the countdown.
A police spokesman said overall, they were pleased with behaviour in Dunedin and Otago Lakes during celebrations.
"While it was busy, there was a good vibe and people were generally well-behaved.
"It was great seeing people out respectfully celebrating, especially families."
There were three arrests in Dunedin, a few instances of disorderly behaviour, which were quickly resolved, and no serious incidents, the spokesman said.
"Police were only one part of a wider team effort, with a fantastic multi-agency response monitoring activity and assisting members of the public across the region."
In Wānaka, excellent weather drew a sizable crowd to the lakefront, and in Invercargill, good weather was welcomed by families enjoying the Dusk on Don New Year’s Eve street party.
Despite the cooler than usual conditions at the Papatowai Carnival and Big Dig, local crib owners and visitors turned out in force to enjoy traditional games.
In Pounawea, the weather held for about 1000 people to enjoy what may be the the last New Year’s Eve fireworks event and in Oamaru, officials were pleased to report — despite cool weather — it had not rained.
