Palmer (28), a teacher at South Otago High School who last contested the event six years ago, recorded a time of 1hr 4min.
A champion on the course 10 years ago, Ricky Gutsell set a fast pace in the opening 2km stage through bush area leading on to the beach section.
''Ricky was smoking it,'' Palmer said.
''I was struggling to keep up with him. It was only on the sand and being a bit lighter that I was able to pull away.''
At this stage, Palmer cut his path in line with the hill section at the end of the beach.
''I just flogged it,'' Palmer said of his run up the hill.
His pace proved enough to hold out a threat from last year's runner-up, Will Smith. Palmer broke the finishing tape in 57min 49sec, with Smith second in 59min 35sec and Gutsell third in 1hr 18sec.
Palmer, who won the Dunedin marathon in September, opted for the Catlins event ahead of returning to Taupo to contest Ironman New Zealand.
He intends to concentrate on running for a while before setting his sights back on Ironman.
Another to back up victory in the Dunedin marathon was Mel Aitken, who is running ''just another marathon'' next week in the Mototapu Challenge.
Aitken, who was second last year, cleaned up the open women's field in 1hr 7min 2sec.
''It was easy sailing,'' she said.
Getting into the spirit of the race was ultra-distance athlete Jim Kerse, who walked the 15.5km course in a suit, tie and bowler hat, in 2hr 1min 57sec.
Also present was Koen Naulaerts (18), a professional footballer from Wolfsdonksport Club in Leuven, Belgium, who is in Dunedin to help promote the Fringe Festival.
