Senior Sergeant Anthony Bond, of Dunedin, said police stopped a vehicle after it sped through an orange light at 11.15pm on Friday.
An 18-year-old woman was behind the wheel and had passengers aged 16 and 17.
When police were speaking to the occupants they noticed the smell of cannabis coming from inside, prompting a search.
While this was being done, the 17-year-old decided to run away, Snr Sgt Bond said.
Police pursued the teen on foot for a short time and caught up with him.
Officers continued to search the vehicle and located 12.7 grams of cannabis, marijuana utensils and two LSD tabs. The woman said the drugs and utensils belonged to her, Snr Sgt Bond said.
She was arrested and charged with possession of cannabis plant, possession of LSD and possession of utensils and will appear in Dunedin District Court on May 23.
During the 17-year-old’s arrest, he was found to be in possession of a set of knuckledusters and referred to Youth Aid, police said.
The 16-year-old girl was driven home, due to her age.