Senior Sergeant Anthony Bond, of Dunedin, said officers conducted a random traffic stop on State Highway 1 near Shag Point about 8.10pm yesterday.
Officers spoke to the passenger of the vehicle, a 40-year-old man who was naked due to the heat, Snr Sgt Bond said.
Checks were done and it was found the man had a warrant out for his arrest.
As a result he was placed under arrest and asked to put his clothes on.
Once dressed, he was searched by police and officers located 3 ounces (85 grams) of methamphetamine in his clothes.
The man was due to appear in court this morning charged with possession of methamphetamine for supply, Snr Sgt Bond said.