Eight patrol cars were involved in the pursuit of the driver, who at times drove up to 150kmh, after a petrol drive off in Balclutha, police said.
The man eventually gave himself up to a following patrol car, stopping in the middle of Gladfield Rd, a rural road south of Mosgiel, almost an hour after the chase began.
Constable Amie Manning said police were alerted after a Mitsubishi V3000 station wagon was involved in a $90 petrol drive off from BP2Go in Clyde St, Balclutha, about 8.45am yesterday.
A passing police officer spotted the vehicle in Waihola and pursued it for a few minutes.
Police abandoned the pursuit as the vehicle reached speeds of 130kmh to 150kmh, crossed the centre line and overtook vehicles on the inside shoulder of the road, Const Manning said.
''It was too dangerous for police to continue.''
The station wagon then struck a car driven by a 71 year old Balclutha woman during an overtaking manoeuvre between Allanton and East Taieri.
''She's extremely lucky not to be injured. Everyone travelling on the roads that day was extremely lucky.''
The woman was uninjured but very shaken by the collision.
Police then witnessed the driver attempt to overtake two trucks on the brow of a hill leading into East Taieri on State Highway 1, she said.
He evaded police in Mosgiel and drove on to Peter Johnstone Park in a further effort to lose patrol cars.
''Members of the public had to flee for their safety,'' she said.
''He's not been able to exit, so he turned around and came back out.''
He was spotted by a police patrol parked at the intersection of Dukes Rd and Puddle Alley, and attempted to evade the officer by turning off at an intersection about 100m south.
With police again in pursuit, the driver encountered an oncoming truck and drove over a culvert and into a ditch to avoid a head on collision, Const Manning said.
Minutes later, he stopped in the middle of the road in nearby Gladfield Rd and gave himself up, she said.
''He was co operative,'' Const Manning said.
She did not wish to comment on the man's explanation for starting the chase.
He was known to police.
A Downer road worker in Dukes Rd said he saw the car coming towards the truck and hitting the culvert about 70kmh.
''I'm not sure who the truck driver was, but I bet he was s... himself though,'' the man, who did not wish to be identified, said.
''I came running around here thinking I was going to have a car in the ditch upside down and I said `Where's he gone?' and the boys said `He's come straight out the other side'.
''You don't see it very often on worksites. ... It'll give the boys something to talk about in the pub.''
The road worker said the driver was lucky to escape unharmed and narrowly missed a lamppost as he drove out of the 1m deep ditch.
Brett Kamira Martin (46), of Invercargill, appeared in the Dunedin District Court yesterday afternoon, on charges including reckless driving and theft.
Martin was also charged with failing to stop to ascertain injury after a non injury accident, and failing to stop for police while driving dangerously.
He was remanded in custody by consent until tomorrow. Const Manning called on any witnesses to contact police.
Anyone with information should phone Dunedin police on 471 4800. Information can also be provided anonymously to Crimestoppers on 0800 555 111.
Additional reporting by Damian George.
