The initiative has been organised by Woof! bar co-owner and activist Dudley Benson.
Proposals would be presented which expanded the notion of a zebra crossing.
The aim was to create the "biggest and the most unique rainbow crossing" in Aotearoa New Zealand.
"We are going to go big with this and make ours a representation of our people in our community."
Mr Benson said homophobia and transphobia existed in Dunedin.
"It exists particularly with a toxic male drinking culture, which is exemplified on late evenings in the Octagon."
For him the reason for the crossing was to send a message that the city celebrated the queer community and did not tolerate bullying.
"Statistics and evidence show us that we have young people who identify as being somewhere on that rainbow spectrum who are suffering higher rates of depression and suicide than non-rainbow people."
The rainbow crossing will be designed by artists Madison Kelly and Daniel Blackball.
Council central city plan project director Dr Glen Hazelton would be attending and would help with the next stages of the proposal.
Give Out Day
Volunteer-run queer organisation Dunedin Pride is hoping to raise about $5000 to create a community hub that will open for its Pride Month in March next year.
Chairperson Max Wolfgram said the aim was to find a central spot where anyone could visit and feel connected to their community.
"There is a real need for a space in our city that connects, supports, and empowers rangatahi in particular."
The Dunedin Pride team is kicking off its fundraising effort today with Give Out Day.
It is being run by the Rainbow New Zealand Charitable Trust, which is matching donations dollar-for-dollar from a funding pool of more than $20,000.
Visit giveout.org.nz to give.
