Barefoot, half-clothed, and with the "adrenaline pumping", Mr Caulton and Mr Howie said there was "no chance" they were going to let the man get away, after numerous reports of suspicious behaviour in their inner-city neighbourhood.
Mr Caulton said he awoke early yesterday and saw a man at the rear of neighbouring flats.
He rang neighbour Mr Howie, then went outside, where he said he found a man looking into an all-female student flat, so decided to "bail him up".
"I shouted out at him as loud as I could and he just took off," Mr Caulton said.
Mr Howie, a New Zealand Army Territorial soldier, joined him and the pair pursued the man and caught him when he tripped and fell into undergrowth.
Cosy Dell Rd resident Brittany Walker said the two men were the "community-watch heroes of Cosy Dell".
Senior Sergeant Bruce Ross said a 49-year-old man had been charged with acting indecently in public.
The man is due to appear in the Dunedin District Court this week.
Snr Sgt Ross praised the "absolutely" good neighbourhood watch work the group had done.
