The track, which features traffic lights, a speed camera and a rainbow tunnel, was thronged with children, with about 100 bikes on the road at one time.
It also featured traffic signs, intersections and a roundabout to help children learn how to be safe on the road.
The track was constructed by Downer with funding provided by Waka Kotahi NZ Transport Agency.
Downer regional manager Otago Chris Jones said his organisation took a lot of pride in being part of the project.
All of the road features such as stop signs and give way signs were identical to those found on the streets, albeit on a smaller scale.
Waka Kotahi 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."
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."
