Police were called to a smoking toilet block at the Dunedin bus hub early yesterday.
Senior Sergeant Anthony Bond, of Dunedin, said police were called to the smoking cubicle at the bus hub by a street cleaner about 4am yesterday.
When police opened the cubicle to extinguish the fire, officers found a 31-year-old man lying on the ground with a small pile of items burning next to him, Snr Sgt Bond said.
"Police extinguished the fire and arrested the male."
A formal warning was issued and the man was referred to probations for breach of his release conditions, he said.