Photo: Photosport
Williamson was released by the Sunrisers Hyderabad last month, having been on a contract worth almost $NZ3 million.
However his deal with the defending champions the Titans is only worth $386,000 in comparison.
The Sunrisers' $2.8 million for Wiliamson last season was the highest price paid by a franchise for an overseas player.
However he only scored 216 runs in 13 games at an average of just under 20.
Indian allround Hardik Pandya captains the Titans and he and Williamson have a good relationship off the field.
There are no other New Zealand players at the Guijarat franchise with Black Caps pace bowler Lockie Ferguson released from his contract in November.
Kyle Jamieson was the only other New Zealand player picked up at mini IPL auction, sold to the Stephen Fleming-coached Chennai Super Kings for $190,000.
Jamieson is currently on the comeback trail from a back injury he suffered on the Black Caps' tour of England in June.
Eight other New Zeland players missed out at auction - Jimmy Neesham, Adam Milne, Daryl Mitchell, Tom Latham, Michael Bracewell, Matt Henry, Ish Sodhi and Scott Kuggeleijn.
Earlier this month Williamson announced he was stepping down as the Black Caps test captain but is remaining skipper for the one-dayers and T20s.
England's Sam Curran has become the most expensive IPL player. Photo: AAP / www.photosport.nz
England's Sam Curran became the most expensive auction buy in the history of the Indian Premier League after being bought by Punjab Kings for $3.5 million.
Six franchises made a bid for the 24-year-old all-rounder before Punjab were eventually successful.
Curran was named player of the tournament at this year's Twenty20 World Cup after helping England to become double white-ball world champions.
The previous most expensive IPL player was South Africa all-rounder Chris Morris, who was signed by Rajasthan Royals for $3 million in April 2021.
That figure was surpassed when when Mumbai Indians paid $3.35 million for Australian all-rounder Cameron Green.
-RNZ/BBC