Set a mammoth 502 for victory, the Volts came agonisingly close thanks to a record 10th-wicket partnership, a maiden century from Mark Craig and a glorious 147 from Michael Bracewell.
The valiant chase came to an end when Craig was bowled for 104 with his side just 28 runs short of what would have been a record chase. As it was, Otago's total of 474 was the third-highest fourth innings score in New Zealand first-class cricket history.
That defeat should welcome Otago's effort hardly seemed just. But then Northern had dominated the match for the first three days and on balance deserved its victory.
The Knights amassed a first innings lead of 192 and posted 308 for four declared in its second innings. Joe Carter (125) scored his maiden first-class century and Brad Wilson (82) also forced the home team to toil hard in the field.
The visiting side declared just after 3pm on Saturday and Otago went to stumps at 143 for two.
Bracewell resumed yesterday on 49, with nightwatchman Bradley Scott yet to score.
Scott could not stick around but Bracewell and Ryan Duffy got themselves set and combined in a partnership of 111.
Bracewell brought up his sixth first-class hundred with a square drive for four. He survived a very close shout for lbw early in his innings but was otherwise assured at the crease.
The 90s were a bit of crawl, though, as the batsman scored seven consecutive singles before squeezing a full delivery from Daryl Mitchell past gully.
Duffy, who was dropped on 22, struggled to get his innings going but gained in confidence the longer he batted. But with lunch in sight he prodded forward tentatively and was undone on 48.
Brad Rodden was out moments later. He had waved his bat at the ball and got an edge. A lack of footwork was probably his biggest downfall.
With five down at the break, a draw was starting to look a long way off. But Derek de Boorder continued the fight with Bracewell and the pair added 57 for the sixth wicket.
The turning point came with the re-introduction of Ish Sodhi. The Black Caps legspinner bowled poorly earlier but was suddenly getting the ball to spin again and trapped Bracewell lbw for 147.
Bracewell left shaking his head and the video evidence suggested he may well have got outside the line of off stump. It was a close call.
He had been in imperious form and anything seemed possible while he was at the crease.
De Boorder nicked out moments later but Otago found more would-be saviours in Craig and No11 Jacob Duffy. His 27 not out defied Northern's attack for more than an hour and half and was his highest first-class score.
He helped get Craig through to his century and their 10th-wicket partnership of 102 was a record against Northern Districts, eclipsing the mark set by Peter Hills and Vaughn Johnson in Gisborne in 1988-89.
It was Otago's third 10th-wicket century partnership and the first since Roger Blunt and William Hawksworth combined for 184 in 1931-32.
