The crash resulted in two people being taken to hospital and a man being charged with dangerous driving.
A police spokeswoman said officers responded to reports of a single-vehicle crash in George St, between Willowbank and Bank St, about 1.40pm yesterday.
A 34-year-old man has been arrested and charged with driving in a dangerous manner and driving while disqualified.
He will appear in the Dunedin District Court next week.
Investigators also wanted to talk witnesses, including a pedestrian they believe narrowly avoided being hit by the blue car.
A St John spokeswoman said one ambulance attended and took two patients to Dunedin Hospital with minor injuries.
An Otago Daily Times photographer at the scene said a lamppost appeared to have been damaged in the crash.
A man could be seen struggling as he was arrested and there was a heavy police presence at the scene.
It appeared a child was being escorted to the ambulance along with a woman, the photographer said.
