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One person with moderate injuries was taken to Dunedin Hospital by ambulance, and it was not immediately clear if anyone else had also been injured, a police spokeswoman said.
However, no-one had been seriously injured, she said.
One car ended up on its side, blocking the north-bound lane and the other vehicle went into a ditch, near the intersection of Phosphate Rd and State Highway 1.
The highway was reduced to one lane, and was fully reopened shortly after 7.30pm, she said.