Council roading maintenance engineer Peter Standring said the camera, which was installed at the weekend on the Stuart St overbridge, allowed people to check traffic conditions via the council website and would be particularly handy during the winter months, when driving could be treacherous.
The camera, which cost $6500 to install, monitored traffic in four directions and uploaded two separate images of Stuart St - one looking towards the city and another towards Taieri Rd - and one in each direction along High-gate.
Mr Standring said public demand for finding out road conditions online had been proved by the number of people who accessed the Octagon webcam on snow days, with hits on the website jumping from the usual couple of hundred to the thousands.
People from all over Dunedin would be able to gauge how much ice and snow was likely in their part of town by looking at the image of Stuart St, he said.
The camera added to a host of other information motorists could get online, with New Zealand Transport Agency traffic webcams and temperature gauges also accessible through the council website.
The camera adds to a network of more than 10 webcams accessible via the council website, with some used to attract tourists to the city.
The most popular council camera is the one in the Octagon, which has had 181,148 visitors since it was installed in 2009.
Other popular council webcams in the city included one of St Clair Beach, which was commonly used by surfers to check the surf, and the Television New Zealand weather feed, which is aired during news broadcasts.
The cameras accessible via the council website are separate from the CCTV cameras installed in the Octagon, which are used as a crime prevention tool.
The webcams can be viewed at www.dunedin.govt.nz/webcam