The track, which features traffic lights, a speed camera and a rainbow tunnel, was thronged with children and about 100 bikes and scooters were on the track at one time.
It also has traffic signs, intersections and a roundabout to help children learn how to cycle safely on the road.
The track was constructed by Downer with funding provided by the NZ Transport Agency (NZTA).
NZTA regional manager maintenance and operations central and lower South Island Peter Brown said the technology in the park was key in teaching road safety to children.
"[Having] the sort of things that children need to learn about ... to get out on the open road and the city streets is fantastic."
The park tied in with work the NZTA was doing with the Dunedin City Council to encourage alternative methods of transport such as cycling and walking, Mr Brown said.
Funding provided by the NZTA came from money spent on personalised vehicle numberplates.
Downer regional manager Otago Chris Jones said his organisation took much pride in being part of the project.
The build had taken eight weeks, although the recent cold weather had them scrambling to be ready for the opening.
"The snow event ... certainly put us back a week or so, so it was a monumental effort from the team to pull it together."
All the road features such as stop signs and give-way signs were identical to those found on streets, just on a smaller scale.
Dunedin Mayor Aaron Hawkins said free public facilities such as the track were important for the wellbeing of families in the city.
"It’s great to have places where people can go and spend time together with their own families ... without the expectation of having to spend money."
He had been to the park with his children in its previous incarnation, and visits would definitely continue as it was far more attractive now, he said.
Lyra Mclaren, with daughter Elsa (4), said the facility was amazing and she was impressed with the quality achieved in the amount of time taken to rejuvenate the track.
Elsa said her favourite parts of the track were the traffic lights, pedestrian crossing and tunnel.
