Several members of the public watched on as the teenager struggled to free himself from police and appeared to challenge them to a fight before being taken down this morning.
In a statement, police said the teen, who was wanted for arrest, was located at the intersection of Cumberland and Lower Stuart Sts about 8.20am.
"The young person resisted arrested and a taser was deployed. No one was injured in the incident."
An Otago Daily Times reporter at the scene said the teen could be seen shoving and shouting at two officers as they tried to restrain him.
He lost his shoes in the fracas as he shoved one officer and leapt into the street, squaring off in his socks as if to fight the officers.
He was tasered in front of several members of the public, including a bus driver who left his bus to offer assistance.
As the teen was being detained, another member of the public brought one of the officers his handcuffs which had apparently been dropped during the incident.
The witness, who did not give his name, said he had seen the incident from the beginning when the teen "full on smacked" a female arresting officer in the head.
Police said a 17-year-old would appear in the Dunedin Youth Court today charged with escaping custody and resisting arrest.
