Koren Potter (26) has a ''clean slate'' after her diversion on a charge of obstructing police on February 18, 2007 was recently expunged from the court record.
The matter was dealt with by Judge Kevin Phillips in the Alexandra District Court.
Miss Potter's parents, Denise and Steve Potter, of Alexandra, campaigned for more than eight years on behalf of Shane Cribb to uncover the truth about the 2005 car crash.
Mr Cribb was Miss Potter's boyfriend at the time and was driving her car when he collided with a police vehicle driven by Senior Constable Neil Ford.
Snr Const Ford was convicted of perjury in 2010 after wrongly blaming Mr Cribb for the collision and Constable Dairne Cassidy, who investigated the crash, was convicted in 2010 of trying to pervert the course of justice.
An Independent Police Conduct Authority (IPCA) report into the police handling of the case found ''multiple failings'' by southern district police meant the truth about the crash was not uncovered for two years, ''causing much undue stress to Mr Cribb and his supporters.''
In 2007, Mr Potter complained to the organisation that preceded the IPCA, the Police Complaints Authority, about the handling of the crash and claimed his daughter, then aged 19, had been ''harassed'' by police because of her connection to Mr Cribb.
She had been asked for identification by Const Cassidy while in a local hotel and was eventually taken to the police station, arrested and charged with obstructing police.
That incident was the subject of a separate IPCA report in 2011 that found her arrest was ''unfair and unjustified'' and police accepted that finding, Southern district commander Superintendent Andrew Coster confirmed this week.
Mr Potter said no recommendations were made in that report but, after the IPCA report on Mr Cribb's case, the Potters had asked Supt Coster whether their daughter's record could be cleared.
''And, to be fair, he acted immediately and that's somewhat restored our faith in the police. It shouldn't be up to us to have to push for it, though,'' Mr Potter said.
Supt Coster said Miss Potter had been arrested on licensed premises for failing to provide her details in circumstances where she was not legally obliged to do so.
The ''anomalies'' in the arrest were not detected when the prosecution was brought and Miss Potter was offered and completed diversion, which led to the withdrawal of the charge.
''For reasons that are unclear, actions were not taken at the time of the [2011] IPCA's finding to 'correct the record' about Koren's arrest. Whereas the court record reflected that the charge was withdrawn as a result of diversion, the appropriate outcome was for the charge to be dismissed.
''Upon becoming aware that actions had not been taken to put right the poor handling of this matter, we took steps to initiate a rehearing of the charge against Koren and offered no evidence, which led to its dismissal and thereby corrected the court record,'' Supt Coster said.
''The problems with the case should have been detected at the time the matter was processed for diversion and it was a failing that this did not occur.
''Since that time, the whole framework for bringing charges has changed and there is much greater scrutiny of evidential sufficiency, both at the time of the arrest and as the matter moves through the court system,'' he said.
Miss Potter moved to Dunedin several years ago and said it was nice to know she now had a ''clean slate''.
Mr Cribb's case is included in a television documentary series on injustice and filming had been completed recently, she said.
''Reliving it all for the documentary was hard going. I don't think I realised at the time ... it's still quite raw and it made me realise what a big part it was of everyone's lives and it always will be.''
Although her relationship with Mr Cribb had ended, they would always be friends, she said.