Mr Murray gifted a copy of his book A Seat at the Table of my Elders to the school, pointing out that it included a photograph of Josie.
He also recalled that he had published the book the day she retired.
"Who would have thought I would be returning here to donate a book to a library dedicated to her after she has passed away," he added.
The honour of cutting the ribbon was awarded to Year 8 pupil Taarewa Mane, who had been one of Josie's reading students. Principal Sue Arrell said Taarewa had been very close to Josie, and had spoken at her home on behalf of the pupils before she was laid to rest.
Ms Arrell also thanked all involved in the library project.
"The library, as you know, is dedicated to the memory of our beloved teacher aide Mrs Josie Murray, who worked at Kaitaia Intermediate School for 44 years," she said.
"Josie resigned her position at the end of Term 1 this year.
"We held a lovely farewell function for her, where I revealed that we would be naming our new library after her. Unfortunately she passed away at the beginning of Term 2, and I was so pleased that I had shared with her that the library would be dedicated to her."
She concluded with the whakatauki, Ka pu te ruha ka hou te rangatahi. (As the old net goes out the new net comes forth.)
Josie's son Barry also spoke, on behalf of the many members of her family who were there.
"If Mum was here today she would be the first to say 'Don't make a fuss'.
"She always put others before herself," he said.
"It is a great pity she isn't here today.
"I know the library dedication was a huge surprise for her and she was over the moon about it all.
"Education was so close to Mum's heart; thank you for giving Mum's name to this facility here."
Board of trustees chairman Kevin Matthews recalled that when he was a pupil at the school he sat in one of the two classrooms that now made up the new library.
"That was a great learning year, and it is an even better learning space now," he said.
"That's what education is all about. I am really pleased with the result."