A stolen Lexus sedan was driven into a post and chain fence to get into the domain, then used to damage trees, recreational areas and the sports field.
Dunedin city councillor Colin Weatherall said grass on the domain and a gravel access road were "well chopped up" after the vehicle was driven at speed in the domain.
He estimated the damage could cost between $5000 and $10,000 to repair.
"We've had a problem with vandalism at the domain spasmodically, but nothing serious for some time . . . It would be a shame to have to restrict access and put a bigger fence in. It's just a sad case of 0.1% of people potentially spoiling the reserve for the thousands who enjoy using it each year."
Vandalism at the domain angered many people in the community, he said.
Turf at the nearby Brighton Beach Park was damaged by vehicles last week, he said.
Senior Constable David Bell, of Green Island, said police believed the Lexus was stolen from a Roslyn house during a burglary early yesterday.
After being driven "like it was in a rally", the vehicle collided with a barrier post at the domain and might be damaged beyond repair, Snr Const Bell said.
The windows of a Nissan sedan parked nearby at the surf club were smashed.
That car's stereo was removed but discarded, damaged, nearby.
The incidents might be linked, he said.
Three young men were seen in the Brighton area walking towards Ocean View early yesterday.
At 5.40am, a resident reported hearing noises at the surf club.
Police would like anyone with information about either incident to contact Green Island or Dunedin police.
