The inaugural Ignition Children's Book Festival Award was awarded last night to Robyn Belton, at the launch of the festival at the University of Otago staff club.
Festival organiser Phillippa Duffy said it was a collaboration between the University Book Shop and Dunedin Public Libraries.
It would be held on the first weekend of November each year, and this year would feature events today and tomorrow for children and adults, including book launches, panel discussions and writers' workshops.
Ms Duffy said the city had an "embarrassment of riches'' in terms of children's authors.
A trust was being set up to help attract funding for the festival in future.
Ms Duffy said Ms Belton had made a sustained and dedicated contribution to children's literature and illustration over a lifetime of work.
"Her illustration style focuses on the detail of everyday life and brings a whimsical touch.''
Ms Belton, who has worked with Margaret Mahy and Joy Cowley, said it was "such a surprise'' to get the award.
"It's terribly special to be chosen by your colleagues, people you work with.''