Acting Senior Sergeant Iain Notman, of Dunedin, said police were called to an area outside library about 9pm on Saturday.
A 26-year-old man was allegedly brandishing a knife and demanding money from another man.
The victim fled the scene and called police, Acting Snr Sgt Notman said.
A short time later, the offender was found on nearby St Andrew St.
There were numerous police in the area and a canine unit also assisted.
The man was arrested without incident and the victim’s personal belongings, which had been stolen, were recovered.
He was held in custody and scheduled to appear in the Dunedin District Court today, charged with aggravated robbery and multiple breaches of bail, Acting Snr Sgt Notman said.
It was not the only knife-related incident to involve police that day.
Police were earlier called to a residential address in St Kilda, about 3.30pm.
They had received reports about three men fighting — one in possession of a machete.
Police arrived and recovered the machete.
There were no injuries to any of the parties involved.
However, there was "three inconsistent stories and no-one wanting to tell police the truth", Acting Snr Sgt Notman said.
"The machete was seized as no-one claimed ownership."
No arrests were made, he said.
