It ended Mosgiel's unbeaten season with a 2-0 win in the local derby during the league's opening weekend.
Meanwhile, Otago University was undone 3-0 by Cashmere Technical in the match at the Caledonian Ground.
After a cagey opening at Memorial Park, Mosgiel started to assert some ascendancy.
Lewis Wall was denied twice early and Caversham was left conceding free kicks in an effort to stem the tide.
Caversham had its first sight of goal after 21 minutes and nabbed the lead on 33 minutes.
Conor Neil got on the end of Craig Ferguson's long throw-in and buried his shot from 8m.
At that point Caversham came into the game and Ben Kiore's pace began causing issues.
Ferguson's game was cut short when a flying tackle on Ben Deeley resulted in him being carded and then forced off injured.
Caversham's Matt Mitchell then conceded another yellow card as the last man defender.
He took down Cam Anderson and from the resulting free kick Riley Anderton headed over the crossbar.
Kiore made it 2-0 eight minutes into the second half, capitalising on a defensive error from Mosgiel defender Rory Findlay.
From there the game meandered along, although both teams continued to create chances.
Caversham was more threatening, forcing Mosgiel keeper Levi Waddington to make a couple of smart saves.
University battled bravely against defending champion Cashmere Technical at the Caledonian Ground.
However, two late goals to Garbhan Coughlan made the scoreline 3-0, which perhaps flattered the visitors.
Tech looked to play the ball forward and put its dangerous attacking line-up in space.
However, the University defence scrambled well.
That, coupled with some brilliant glove work from Stewart Catto, quelled most of the threats.
University had a handful of half-chances itself, although nothing to genuinely trouble the Cashmere defence.
After being caught offside five times in the first six minutes of the second half, Cashmere finally took the lead.
Benjamin Lapslie rattled the crossbar on the 55th minute.
University tried to recover, but it could not stop Lyle Matthysen scrambling one in 30 seconds later.
From there, Cashmere dominated possession and made nearly all the play.
Coughlan finally made it 2-0 in the 88th minute, finding himself in space and after running towards the middle, burying the ball in the net.
He added another three minutes later, just sneaking one inside Catto's left goalpost.
In other results, Coastal Spirit beat Nomads United 3-0 and Nelson Suburbs emerged 4-0 winner over Western.
In the Football South Championship on Saturday, Queenstown beat Green Island 5-0. Carlos Herrman scored in the 14th and 15th minute.
Willem Ebbinge added a brace in the second half and Jonathan Workman buried one as well.
Wanaka drew with Southland 0-0 and Dunedin Technical overcame a resurgent Northern 4-3, Rhys Quarrell scoring twice.
 - with Neville Watson
