Dunedin (pop. 110,000), the economic and cultural capital of the south, lies in Otago Harbour, a natural harbor reaching far inland, surrounded by hills and mountains. Dun Edin is the Gaelic name for Edinburgh: the name is a reminder that the town was founded by Scottish immigrants, who originally thought of calling it New Edinburgh.
In the
prosperous Dunedin of the 19th C. imposing public buildings were built in stone, at a time when the usual building material in the rest of New Zealand was wood. Easily worked limestone was readily available in the Oamaru quarries.
The town's well-to-do citizens built handsome terraced houses with columns, oriel windows and balconies. There are particularly fine examples in Stuart Street and the High Street.