The Farmers block, the first stage of the central city makeover, was declared open in a small ceremony led by Dunedin Mayor Jules Radich.
The work has resurfaced the block while reducing it one lane through the addition of planters. Under the surface old pipes and other infrastructure have been replaced.
Council Chief Executive Sandy Graham acknowledged the work had been disruptive for central city retailers "but this is a once in a generation opportunity to fix our infrastructure and deliver something better for our residents".
The focus is now shifting to the Knox Block.
Work there has been brought forward following requests from businesses in the area, who asked for work to start when the area is typically quieter to minimise disruption, a council spokesman said.
