The stand is on the right hand side of the one-way street, meaning taxi passenger-side doors open into traffic.
Driver and City Taxis director Anthony "Starsky" Ware said yesterday the taxi stand had been in the Octagon for about three weeks.
He did not often drop off people there, as it was more of a "feeder" for a stand in the lower quadrant of the Octagon, but people did cross the road and enter his taxi from the road.
"It's dangerous," he said.
New Zealand Taxi Federation Otago executive member Bill Collie was also concerned about the change.
"We knew nothing about this; it just happened."
But council senior traffic engineer Bruce Conaghan said the council was responding to taxi drivers' concerns about departing from the taxi stand on the left hand side of the road, which was close to a left hand-only lane turning into George St.
Drivers wanting to go straight ahead were finding they were doing so from that lane, and effectively breaking the law.
"That's been addressed," he said, and drivers had more flexibility with where they could park.
Taxi stands in the Octagon had been "an ongoing issue", he said.
