The facilities at the Caledonian Ground passed the test at last weekend's New Zealand track and field championships.
"It is the best ground in New Zealand for athletics," Athletics New Zealand technical delegate Trevor Spittle said.
"The tree-lined fences gives the ground a good image and the closeness of the track to the spectators gives it a good feeling."
The Caledonian Ground is one of Athletics New Zealand's five preferred venues for major track and field meetings.
The others are Waitakere (Auckland), Porritt Stadium (Hamilton), Newtown Park (Wellington) and QE2 Park (Christchurch).
A 2010 report from the International Athletics Federation gave a class 2 certificate to four of the stadiums.
Porritt Stadium missed out.
QE2 is out of action because of the Christchurch earthquake.
Chief walking judge Don Chadderton, of Christchurch, said that the tree-lined ground was "the most picturesque athletics ground in New Zealand".
The chairman of the Athletics Otago organising committee, Andrew Finn, praised the Dunedin City Council, and especially Harold Driver, for playing an important role in putting in the facilities to make the Caledonian a world-class athletics ground.
The chief executive of Athletics New Zealand, Scott Newman, praised Athletics Otago officials for the way they organised and conducted the championships.
"Saturday was one of the best days at a national track and field championships that I can recall," he said.
"I was very impressed with the overall flow and presentation of the meet and it was great to see such good crowds for the feature events.
"The manner of your key Otago personnel in particular was warm and welcoming with a sense of calmness, indicative of sound planning. You have a good crew and a fantastic facility."
The heavy rain and cold wind on the final afternoon demonstrated the importance of having grandstand facilities attached to a major sports ground.
It enabled the meeting to continue on schedule without delays and the athletes were able to dry out in the dressing room under the stand after their events.
Sponsorship from the Community Trust of Otago and support from local business played a key role in funding the championships.
The CoachForce director for Sport Otago, Mike Weddell, said the younger athletes he coached received a buzz watching the championships and have been inspired to go for gold at the South Island secondary schools championships in Timaru next weekend.
Libby Jones (13), the youngest member of the Otago team, won a bronze medal in the women's 16 hammer throw.
Auckland was the leading province and won 113 medals.
It was followed by Canterbury 56, Waikato-Bay of Plenty 53, Otago 43, Wellington 41, Southland 23, Manawatu Wanganui 14, Taranaki 9, Tasman 8 and Hawkes Bay Gisborne 7.
