The pilot project is called Te Ōtepoti Hōu/Hou, which loosely translates to Dunedin Fresh/Sound.
It is intended to celebrate and encourage the city’s range of musical talent and provide a snapshot of new music being created and performed.
Project costs are covered by the council’s Ara Toi/Creative Partnerships budget and are expected to come in under $24,000.
The album will not be for sale.
Cr Mandy Mayhem said she could not wait to listen to the finished product.
It would showcase emerging talent and cultural diversity of Ōtepoti, she said.
"The proud Dunedin Sound continues, but with fresh variety," Cr Mayhem said.
The Dunedin Area Citizens Association was less enthusiastic.
It was all for music, but believed there were more pressing ventures for the council, association chairwoman Jennifer Thomas said.
"We have major concerns about this expenditure coming before other priorities and believe the council needs to show more discipline in the respect of finances."
Council arts, culture and economic development general manager Mike Costelloe said creating a liveable city was one of the council’s "basic functions".
"This small project invests directly in local musicians, recording studios, engineers and technicians, and music businesses and is designed to draw national attention to the innovation and opportunities offered in Ōtepoti Dunedin."
The council invited music organisations and communities to recommend suitable artists from the priority groups: youth, Māori and Pāsifika musicians.
A shortlist of songs was chosen and the compilation is to be released as a small vinyl and cassette run and on digital platforms in May next year.
A mana whenua artist will be commissioned to design the album’s artwork and associated graphic material.
Archival copies would be set aside for institutions such as the Hocken Library and Alexander Turnbull Library, the council said.
Recording sessions had been booked for this month and next month.
Artists would work with music production experts at Port Chalmers Recording Service, South Link Studios and the University of Otago’s Te Korokoro o te Tūī studio.
Ara Toi/Creative Partnerships team leader Lisa Wilkie said the project would provide artists with valuable experience.
"It satisfies a number of the actions in the Ōtepoti Live Music Action Plan, including providing rich learning, networking, and development opportunities for our music communities."
Cook Islands group Turama I te Ara had been confirmed for the album.
"This project gives us a sense of belonging within the city," Turama I te Ara member Teira Dean said.
"A lot of us are born and bred here, so being able to be part of the ‘New Dunedin Sound’ is awesome."
The Dunedin Youth Jazz Orchestra is to record an original composition, Sliding.
Cr Steve Walker said the council was a key partner in developing the live music action plan.
He looked forward to other similar initiatives coming to the fore.
"These are the sort of initiatives that may plant the seeds in creating a future Straitjacket Fits, The Chills, The Clean, The Verlaines, or even an Ed Sheeran or Taylor Swift - you can’t put a price on that."
