The side, which had racked up 18 straight wins to march to victory in the Football South premier league, beat Cashmere-Technical 2-0 on Saturday, with goals from Michael Hogan and Lewis Jackson.
Caversham dominated the game, which kicked off at 5pm, and had the majority of the chances.
Caversham coach Tim Horner said it was one of the best performances of the season from the side and the fitness of the team came through in the second half.
The goals took a while to come but Hogan got the first for Caversham after 71 minutes.
He hit a fantastic flat shot from the edge of the penalty box, leaving the home team’s keeper with no chance.
Five minutes later, striker Jackson got the decisive second goal when he expertly tucked the ball into the corner of the net, after it came to him from a nice pass.
Horner said it was a great way to end the season.
"There was going to be no extra time and it was going to go straight to penalties and we had most of the opportunities," he said.
"We had missed a clear chance just before the first goal and it was starting to look like it was going to be one of those days. We dominated most of the second half and we knew the chances were going to come."
He said it was a good all-round performance but front man Tore Waechter had a fine game and Jared Grove also worked hard for Caversham.
Horner said the win capped off a great season for the side.
Including Saturday’s game and its Chatham Cup run, Caversham had won 23 out of 24 games and the celebrations were lengthy and of a good nature on Saturday after the game.
Its only loss was in the Chatham Cup quarterfinals.
The win in the South Island Championship final was the first by a team from the Football South region since 2011.
There had been a suggestion a South Island league should be introduced to raise standards and Horner supported the idea.
"It would be great for people and the players to have this top quality play all the time. But you’ve got to look at the feasibility of it.
"It is hard work for the administrators but I think most people see it is necessary and want it to happen."
Caversham was energised about the game on Saturday and it would be good to see this sort of atmosphere every week.
Horner said most of the team intended to return next year but one who will not be is Jackson.
One of the key men for Caversham this season, he is moving to Wellington to try his luck there.
His brother, Tom Jackson, also played for Caversham and Southern United before heading to Wellington the following year.Horner said there was no guarantee a South Island-wide league would keep Jackson in Dunedin but it was a way to attract players and keep them in the city.
