The side played five games over the weekend and although it won only one of those, coach Mike Moeahu said the side and players developed throughout the two days and gained some good lessons on the levels needed to be competitive.
The series involved five sides, split roughly along Super rugby franchises, playing over two weekends.
In the first weekend, on November 1-2, also in Taupo, the southern side had chalked up three wins and played well.
Moeahu said the side showed some nice touches and were quick learners but a tough draw with three games against the finalists meant it was hard to find a win.
The series was a new initiative by New Zealand Rugby and Moeahu said it was a large step up from the provincial tournament.
He said youngsters such as Mikayla Latta, Sam Hollows, Courtney O'Callaghan and Grace Earland all played well.
Victoria Subritzky-Nafatali had a fine tournament and showed the skills needed to play at the next level, he said.
She guided the team well around the paddock, while captain Rebecca Todd also worked hard. Midfield back Greer Muir also got through plenty of work.
Nationally contracted player Kelly Brazier did not have a clearance to play over the weekend because of an injured knee but was at the tournament helping out the Otago side,She has now been given the all clear to play for the New Zealand sevens team next month.
Southern Ti Kouka lost 33-12 to Lower Northern Kowhai, the side representing the Hurricanes, in its first game and then lost a close one 26-19 to Central Pohutakawa, which represented the Chiefs region.
Northern Kauri, from the Blues region, beat the southern side 38-7 in the last game on Saturday.
On Sunday, the southern team won 31-17 over Central Pohutakawa and went through to the semifinals, in which it played Lower Northern Kowhai and lost 33-12.
The tournament was won by Northern Kauri, which beat Lower Northern Kowhai 35-33 in the final.
The next sevens outing in the South would be the regional provincial tournament, to be played in Timaru on December 13.