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The match was scoreless after two quarters but North Harbour went ahead about midway through the third period and then sealed the win with three goals from penalty corners in the final period.
The Dogs opened the tournament in promising fashion on Saturday with a 2-1 win over Midlands but could not stop North Harbour last night.
The southern side hung tough in the first half and played well against a Harbour team which had plenty of threats up front.
Southern coach Mark Kake said the team had its chances when it was down 1-0 but could not capitalise on them.
The Dogs missed a couple of clean opportunities on goal and North Harbour became more ruthless the longer the game went on.
When Southern went behind 2-0 late on, it decided to give everyone a run and save some legs for later in the week, North Harbour was potent at penalty corner time and took its chances.
Southern goalkeeper Dom Dixon played well as did Matt Moore in defence and skipper Nick Elder. Schoolboy Malachi Busch played well in his debut for the team.
The game was played in wet, cold conditions.
The Southern women had a day off yesterday but will take on Capital in the late game today.
The men will get to put their feet up today before also taking on Capital tomorrow night.