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Dunedin North Labour MP David Clark cut a ribbon outside the Toitu Otago Settlers Museum late this morning, and said the project had been developed to reduce the number of cycle deaths on the one-way system.
''We do need to do better as a country at making walking, cycling, and other environmentally friendly modes of transport safer,'' he told a gathering to mark the occasion.
Dunedin deputy mayor Chris Staynes said having more people on bikes improved the movement of traffic, as it meant less traffic on the road.
The council was working to offset parking loss from the cycle lanes.
The $8 million NZ Transport Agency project that developed cycle lanes through central and north Dunedin began in late 2017.
It was proposed following deaths of cyclists in 2011 and 2012 on the one-way system, and includes concrete barriers to separate cyclists from cars and trucks.