Over two percent of Dunedin's population is of Chinese descent,[2] among them the city's mayor at the time of the garden's inauguration, Peter Chin.
The idea of creating a Chinese garden in Dunedin was first raised in 1997 during preparations for the city's 150th anniversary commemorations, which were to take place the following year.
A Chinese garden committee was formed, headed by Dr. James Ng, and a site was chosen close to the city's historic railway station and the Otago Settlers' Museum.
Initially there was some concern that the site would prove too windy, and a small but vocal part of the Dunedin population was opposed to the garden's construction.
[citation needed] The design of the garden evolved over the course of eight years of planning to ensure functionality, accuracy, and authenticity.
[4] About 40 workers, artisans and support staff from Shanghai, including two cooks, came to New Zealand under special work visas for the initial construction phase of the garden.
Another 13 artisans joined them later on to build the Pai Lou gateway and finish the garden's features, lay courtyards and mosaics.
[4] The garden was blessed in June 2008, in the presence of Prime Minister Helen Clark and Chinese ambassador Zhang Yuanyuan and opened to the public the following month.
Lan Yuan is designed as a late Ming/early Qing scholar’s garden, and is separated from the rest of the city by a 4 metres (13 ft) perimeter wall.
[4] Hand-carved hexagonal lanterns with shades depicting typical Chinese landscape paintings provide evening lighting for the corridors of the path running inside along the perimeter walls.
Potted plants and sculptures along the paths and in the courtyard between the tower block and the tea house complete the tranquil ambience.
The most important vistas were to be those overlooking the central lake, with elements of movement and stasis linked by winding paths.