The training exercise, aimed at increasing the skills of Southern district search teams, will be based on Mrs Potter's disappearance.
Mrs Potter, who was 53 when she disappeared, has not been seen since she left the garden of her daughter's Dunedin home on March 30, 2015.
Dunedin police search and rescue co-ordinator Sergeant Nathan White said it was because of the Potter family that the searchers were able to use her case as the basis of the exercise.
``I'd like to acknowledge Denise's family, in particular her husband and their children, for consenting to us using this search as a learning tool.''
``We know that Denise is still at the forefront of their minds and that this operation may stir up some emotions for them.''
It was possible the training exercise could uncover new evidence, Sgt White said.
``We will be searching the same areas that were assessed in the weeks following her disappearance and it is possible new information may come to light.''
Each piece of new information would be reviewed, assessed and treated accordingly, he said.
``Our presence might cause people to remember something that may be of use, and obviously we want to know anything and everything that could help to find closure for Denise's family.''
Police, LandSAR volunteers and surf life-saving club members would all receive training in urban land searching.
Surf life-savers were often called on to help in search and rescue operations and although an ocean search was not expected, a water rescue component would be included in the exercise, Sgt White said.
As well as teaching and refreshing urban search skills, the exercise focused on risk management, volunteer searcher management and incident management using SARTrack technology.
SARTrack involved connecting a live transmitter to each team of searchers, enabling their location to be reviewed and logged by the co-ordinator and other teams.
The main part of the exercise would start at 8 this morning and end about 5.30pm.