Adair feels his hard work over the past eight years has been ignored and he cannot understand why the coaching position is being put up for tender.
Adair, in his early 60s, has accepted a sole professional coaching position at the Nelson Aquatics Centre and will start his new job on October 15.
"I have signed a contract with the group that manages the pool," Adair said.
His last job at Moana Pool will be to prepare his Waves Club swimmers for the New Zealand short-course championships in Wellington at the end of September.
Adair believes he has achieved much for Otago swimming in the eight and a-half years he has been coach at Moana Pool.
"But the environment that is being created doesn't suit me any more," Adair said.
He was upset by the Dunedin City Council's plans to put the coaching position at Moana Pool up for tender.
"I don't think it was appropriate to take someone's successful efforts and tender them after eight and a-half years," Adair said.
"There could have been a better way of achieving the changes they wanted."
Adair would have been happy with a peer review because he believed that his programme would stand up successfully to close scrutiny.
He felt the review was disruptive to his swimmers in the Waves Club who train up to 24 hours each week for their sport.
Adair recently earned the Swimming New Zealand gold level coaching qualification, the highest level of swimming coach qualification in New Zealand.
There are only five other coaches in the country who hold this qualification.
Adair has had coaching appointments in Wanaka, Invercargill and Dunedin in the past 20 years and has lifted the standard of swimming and the numbers of swimmers involved in all three centres.
Adair started coaching at Moana Pool in 2004 with with one swimmer and now has a squad of 116. He formed the Waves Swimming Club to give a competitive boost to Otago swimming.
Seven members of Adair's squad have represented New Zealand and they have broken six New Zealand age-group records.
He has been coach of three New Zealand teams and last month was coach and manger of the team to the Oceania championships in Noumea.
"Before I got here, the competitive structure in Dunedin was very poor and there wasn't a lot of racing," Adair said.
"The pathways for the swimmers were not well defined.
"In the last eight years we have created a good development structure and have seen the standard of swimming in Otago improve dramatically."
The Aquatics manager of the Dunedin City Council Steve Prescott said "Andy has done a good job for swimming in Otago and we wish him well for the future.
"There will be a lot of people sorry to see Andy go, but he has made his choice to move on."
He did not think the review process on professional swimming coaching at Moana Pool had any bearing on Adair's decision to resign.
He said no decision had been taken to put the job out to tender.
"I can't pre-empt what might come out in the report," Prescott said.
"There may not be a tender process."
Prescott said a temporary coach would need to be appointed when Adair leaves in October.
"We will have to do something," Prescott said.
"We can't allow the kids to be without a coach because they have competitions coming up."
The council review is expected to be made public by the end of the month.
