Caversham /ˈkævərʃəm/ is one of the older suburbs of the South Island New Zealand city of Dunedin. It is sited at the western edge of the city's central plain at the mouth of the steep Caversham Valley, which rises to the saddle of Lookout Point. Major road and rail routes south lie nearby; the South Island Main Trunk railway runs through the suburb, and a bypass skirts its main retail area, connecting Dunedin's one-way street system with the Dunedin Southern Motorway.