The grant for the city, from a $8.5 million allocation from the Government's Tourism Infrastructure Fund, was confirmed on Wednesday.
Mr Cull said yesterday the money would help offset the cost to ratepayers, which the local government sector had been calling for for some time.
"Ratepayers shouldn't be stumping up for it all," he said.
The contribution to the council was smaller than the sums allocated to councils covering the Queenstown Lakes ($530,000), Central Otago ($297,000), Mackenzie and Waitaki districts ($548,000).
But Mr Cull said the fund was "potentially oversubscribed" nationally, and, after asking for nearly $100,000, he was pleased Dunedin had received about 80% of what it requested.
"They weren't going to be just throwing it around, so I think this is positive. It will be very useful in offsetting the ratepayer cost of managing freedom camping in our area.
"I think we've done pretty well."
The money would help pay for new Portaloos, waste disposal, increased monitoring, a trial camp host initiative and increased support for monitoring.
The money would be put to use quickly, as it was a condition of the grant that the initiatives be in place ahead of the 2018-19 peak season, he said.
"We've got to use it by then or we don't get it."
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Ban them- just like Queenstown and Christchurch. I have yet to see any plan that covers or reimburses rate payer's funds spent on them. We have private camping grounds that can serve campers. We do not need another money pit.
Have to agree !! sure they spend coin where they go but not much and so do paying campers, Cull is and those supporting this IMHO are out of touch. but that is a known given for Cull.
Cull and those supporting it must be thinking that if we provide this we can contain them in one central place, rather than policing current laws of littering, crapping in streets, etc. but who cares if rate payers have to pay for it. It kind of stinks of the green party to me. In some ways Muslim countries have things set up well, owe a fine and you can't leave the country until paid, straight to jail, do certain things straight to jail, and deported. no questions.