A police spokesperson said they received reports of a green Mitsubishi Pajero driving "aggressively and erratically" from Cardrona towards Wanaka on the Crown Range Rd just after 9.30am.
The car was reportedly seen driving into road cones and there was concern for safety of the public.
A pursuit was initiated after the car failed to stop for police on the outskirts of Wanaka.
During the pursuit a police car was "rammed", the spokesperson said.
The damaged car was left parked at the corner of McDougall and Brownston St.
The spokesperson said the driver headed towards Mt Aspiring on the National Park Rd, where road spikes were successfully deployed.
The vehicle was not driving at speed at any point.
A 30-year-old Queenstown man is facing driving charges including reckless driving and failing to stop and could face further charges.
