Otago GuideOtago is a region in the South Island of New Zealand. Its hilly country and sheltered valleys gives the province a variety of climates and some spectacular scenery. HotelsFind hotels in Dunedin and more. DunedinDunedin, old Gaelic for Edinburgh, is a regional centre and the second-largest city on the South Island of New Zealand, located in the Otago region. Blueskin BayBlueskin Bay is in Otago, New Zealand, just north of Dunedin. Blueskin Bay is an estuary where the Waitati River and Careys Creek meet the Pacific Ocean, on the East Otago coast. OamaruOamaru is a town in North Otago, New Zealand, with beautiful Victorian buildings crafted from the fine, white local limestone. AlexandraAlexandra is a town in the Central Otago district of the Otago region of New Zealand. MiltonMilton is a town in Otago, which is one of the original six provinces of New Zealand.