A golf professional at the St Clair Golf Club contacted police after spotting a person acting suspiciously shortly after 10am.
The youth left the scene and got into a silver Subaru sedan.
Its registration was passed on to police patrols, as it was recorded as a stolen vehicle from Christchurch.
Senior Sergeant Steve Aitken said the car sparked a short police pursuit before it was stopped on Allandale Rd, St Clair, and the driver fled on foot.
The 18-year-old was apprehended a short time later on Motu St, while the car's other three occupants - two 16-year-old girls and a 15-year-old boy - were taken into police custody for questioning.
Inquiries were continuing, and the four were expected to appear in the Dunedin District Court this morning.
• Police were also investigating the theft of three Subaru vehicles from the St Clair area on Thursday night.
A white model was recovered on Cliffs Rd yesterday afternoon, after it was reported missing from its Mavis St address overnight.
Police are still trying to find a blue/silver stationwagon, registration DHD537, taken from Skibo St, and a red Subaru Impreza CDS981 taken from Aberdeen Rd.
Senior Sergeant Steve Aitken said the teddy bear was found in the Queens Garden area on Thursday night, and police hoped to reunite him with his owner.
The bear is described as furry, cuddly, and wearing a multicoloured jersey.
He was found with no identification details, and was not wanted by police.
The owner could recover the bear from the Dunedin Police Station.