''It was complete madness,'' Sergeant Nathan White, of Dunedin, said of the incident.
A police officer clocked a car exceeding the 80kmh speed limit near Puddle Alley about 1.40pm, but when he followed the vehicle, the driver ''failed to stop and fled'', Sgt White said.
The vehicle was recorded reaching a speed of 174kmh by the following officer, who ''pulled out and abandoned the pursuit due to safety concerns'', Sgt White said.
''At that time of day there is a lot of traffic in the area, so those speeds are hugely concerning for police.''
Police then launched a search for the vehicle, and ''with the help of some nearby contractors'' the vehicle and the three occupants were located in Gilkison St, off Taieri Rd, just before 2pm.
He praised the officer for calling off the pursuit early, as the offending vehicle posed a risk to the public.
The 21-year-old driver was charged with driving in a dangerous manner, driving while suspended, and failing to stop for police. He is expected to appear in the Dunedin District Court on Friday.
