The new structure, including the Dunedin-Palmerston bus service, will replace the current seven-zone system on August 15.
And the number of fare change points will be reduced, making it easier for bus users to immediately see how much it will cost to travel to their destination.
Go Card users will be able to transfer between buses within the same zone free, removing the charge for changing services under the current fare structure.
A 30-minute time limit applies to transfers.
Most customers using a Go Card would pay less for travel than they did under the current fare structure, and the free same-zone transfer would add to the benefits, Mr Collings said.
A Go Card user travelling from Mosgiel to Cargills Corner daily would save $35.70 a week by using the new free same-zone transfers.
The new fare zones are part of a series of changes adopted in the Otago Regional Council regional public transport plan and 2015-25 long-term plan to streamline the Dunedin bus network.
Information on the new fare zones and other planned changes to the bus network can be found at www.orc.govt.nz/buses
