A council spokesman said parking officers had begun enforcement for all the no-stopping sections of the upgraded George St, in addition to the regular parking enforcement elsewhere.
Standard infringement fees of $40 would apply for most offences, he said.
"It’s basically to ensure the design of the [newly redeveloped] George St is adhered to. Cars were not meant to be parking at that end.
"We’ll be informing people of the changes for a short while, but we basically have to start enforcement action."
A report presented to councillors at this week’s meeting said, so far, council staff had taken an educational approach to help users understand the new road layout.
"However, there are times when the street remains the subject of illegal and sometimes dangerous parking.
"To enforce the signposted restrictions in place on the street, the no-stopping restrictions must be added to the traffic and parking bylaw."
George St has undergone a $100million redevelopment, and the final stage opened in April.
"There is evidence that cars are parked in areas that are not intended for parking.
"To keep visual clutter on the street to a minimum, signs were only installed at specific locations.
"However, the no-stopping and shared-space signage is not having the desired effect and there are often times that vehicles park both illegally and in an unsafe manner."
The report recommended parking controls be enforced along George St.
There were "no disadvantages" to this recommendation, the report said.
Advantages to this approach included enabling property access by prohibiting obstructive parking, making existing parking controls clearer and providing for access to new driveways.
Doing nothing would create "more work for council resources in responding to complaints".
Dunedin resident Jessica de Heij has previously raised the issue with the council.
She was pleased the council was doing something about it.
"Currently, especially during weekends and nights, there is a lot of illegal parking happening down George St.
"This leads to dangerous situations for people walking down the shared path that is often cluttered with cars, especially for children, parents walking with prams, elderly people or people with a disability.
"Education unfortunately hasn’t fixed this issue and I’m keen to see this resolved to create a great street for everyone to enjoy."