The Dunedin City Council and Otago Regional Council have supported a combined contribution of $129 million sourced from rates and dividends from council companies.
The midday march along George St to the Octagon was organised by the group Stop the Stadium and attended by a range of people, from the elderly to young families.
The crowd - estimated by organisers to be about 1000 people and by other observers about 600 - was vocal, but peaceful, shouting loudly "No", when asked by organiser Stop the Stadium president Bev Butler if they believed the proposed $188 million price-tag for the new stadium was realistic.
"We are here today because we love Dunedin and we want the councillors to know how strongly we are opposed to this proposed stadium," she said.
Those who really wanted the stadium built should seek money from sources other than ratepayers, she told the cheering crowd in the Octagon.
A passion for resurrecting a once great, but now waning, rugby culture had replaced common sense in local government in Dunedin, Dr Marc Schallenberg, from the University of Otago, said.
After speeches from Mrs Butler, Green MP Metiria Turei, Dr Schallenberg and Stop the Stadium vice-president Victor Billot, Mr Billot led the crowd to the town hall, where he posted a message to councillors on the front door.
"The message is that no public money should be spent on the Awatea St stadium.
"Let our voice be heard and acknowledged."
Mr Billot later said he was pleased with the turnout.
The Stop the Stadium group had gained about 630 members since it was started a month ago, he said.
"But we've still got a lot of work to do yet."
