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A police spokeswoman said the action began shortly before 3pm, when the driver fled from police after an officer attempted to pull him over on King Edward St.
The officer gave chase, before the white Subaru Legacy station wagon mounted the kerb on Andersons Bay Rd heading into Midland St. Police then decided to abandon the pursuit due to the erratic nature of the young man's driving.
Shortly after, the man abandoned his Subaru in the car park of the nearby Edgar Centre sports venue, fleeing on foot and leaving his large Rottweiler panting in the back seat.
Police, including officers from the dog section, swarmed South Dunedin, searching for the man around Midland St and Andersons Bay Rd, before he was spotted near the Countdown car park.
After short foot chase he was arrested by an officer.
Charges were pending, the police spokeswoman said.
Meanwhile in the Edgar Centre car park, the alleged offender's vehicle was being hoisted onto a Reilly's tow truck, as the Rottweiler sat patiently in the back.
The car containing the large dog was then towed to Dunedin Central Police Station to be impounded.
The fate of the dog was unclear, but a Dunedin City Council staff member from Animal Control was on scene at the Edgar Centre.