While she was in the city, Ms Collins also met Mayor Peter Chin and police staff.
During the meeting with Mr Chin, the pair discussed the recent gang and student activity in the city.
In a meeting with police staff, Ms Collins talked about her plans to scrap policies that have gang members in prisons housed in units according to their affiliation, which she said caused problems inside and out.
"Prisons should not be seen as recruiting grounds for gangs."
She was considering segregating the leaders of gangs and spreading members throughout prisons and units, a tactic she claimed had worked well in Australia.
She planned to look at the move during a trip across the Tasman to study corrections systems.
She could understand the recent turf war over the cannabis trade in Dunedin was concerning for residents, particularly because it appeared to be unusual.
She suggested that in addition to the moves Mr Chin was already considering, he should contact other mayors and discuss with them what they had done to address gang issues in their towns.
She also explained to him some of the legislation the Government was trying to implement that would make easier surveillance of gangs and removal of gang fortifications.
She also spoke to him about the toga parade and shared his concerns that the negative publicity created by such events was a serious problem for Dunedin.
She also wanted to make sure Dunedin police had everything they needed to respond appropriately to the problem.
Her visit to Montecillo was her first as Minister of Veteran Affairs and she said she was impressed with the facility.
