The men, aged from about 17 to their early 20s, were spotted this morning on Baldwin Street with one of them in the chilly bin attached to the back of the car by an electrical cord, said Senior Sergeant Craig Brown.
They were also seen riding in the bin down one of Dunedin's main streets, as well as allegedly using petrol to set the road on fire before two of them took turns sitting on the lid of the chillybin and skidding through the flames, he said.
The driver had been charged with dangerous driving.
The man who rode in the chilly bin down Baldwin St and through the flames was facing two charges of disorderly behaviour.
The other man was facing one charge of disorderly behaviour.
All three, two from Dunedin and one from Queenstown, will appear in court next week.
Several years ago a student was killed after riding down Baldwin Street in a wheelie bin, Mr Brown said.
"Common sense was definitely lacking" on the parts of the three young men arrested today, he said.