Tarling (52) finished one shot ahead of Australian professional Paul Dalgleish, with Wanaka club professional Garth Domigan a further stroke back in third.
Playing in his first seniors (over-50) event in New Zealand, Tarling pocketed $7938 for his rounds of 68, 71 and 69.
He competed in the 1982 New Zealand Open on the Shirley course in Christchurch, shortly after turning professional.
The top three were the only serious contenders for the title although Peter (Chook) Fowler finished his round with four threes for a 67 yesterday, recording the lowest round of the tournament, to finish fourth.
Domigan started the day with a one-shot lead over Tarling, while Dalgleish was two shots off the pace.
Tarling and Dalgleish turned 2-under, while Domigan lost the lead, shooting an outward nine of 36.
Domigan came back into contention with a birdie 3 on the 10th hole, while his opponents responded with birdies on the Glen hole.
The crucial moment in the three-way contest came on the par-3 15th, when all three golfers finished within 2m of the cup.
Domigan missed his putt while Tarling and Dalgleish dropped theirs for birdies.
Domigan again fought back with a birdie 3 on 16, only to lose any chance with a disastrous double-bogey 6 on the following hole.
Dalgleish bogeyed the 16th and Tarling took a one-shot lead, which was the difference when both golfers finished birdie, bogey for 69 each.
The Dunedin tournament attracted three former Balmacewen club professionals.
Peter Hamblett started at Balmacewen in 1977, followed by Terry Adcock and Michael Henderson.
