The blanket of smoke was heavy until late morning.
Public Health South medical officer of health Dr Marion Poore fielded several calls from schools and child-care centres seeking advice yesterday, while the Department of Labour had some calls from workplaces.
Public Health South issued a warning of possible health effects arising from the smoke.
Dr Poore said it was important people used common sense, limiting physical activity if necessary, particularly those with respiratory or heart conditions.
The air pollution levels recorded in Dunedin yesterday were rare for the city, Dr Poore said.
They peaked in central Dunedin at 10am, when the reading was more than 210 micrograms per cubic metre of air.
By 3pm, the level dropped to about 38mcg.
The national standard classifies anything over 50mcg, based on a 24-hour average, as a high pollution day.
In Mosgiel, pollution reached about 325mcg at 10am, dipping to about 35mcg at 3pm.
Otago Regional Council director of environmental information and science John Threlfall said levels, while high for Dunedin, were about a third of what Central Otago communities such as Arrowtown registered on the most polluted winter days.
However, in some parts of the city - such as Halfway Bush - readings could be higher.
Logan Park High School postponed its annual athletics day at the Caledonian sports ground yesterday, on advice from Public Health South.
Pine Hill Children's Centre manager Claire Hutton said she kept the children inside until about 10.30am, when the smoke mostly had cleared.
Dunedin North Intermediate School principal Ross Leach said a group of year 8 pupils were to walk the Pineapple Track on Flagstaff yesterday morning, but instead went for a beach walk.