A police spokesman said officers responded to multiple calls of a driver overtaking dangerously and speeding in the area, and police first spotted the driver in Mt Aspiring Rd at 3.40pm.
Police signalled for the 21-year-old driver to stop in Cardrona Valley Rd about 3.55pm, but he fled at speeds of up to 170kmh.
Police did not engage in the pursuit, but caught up with him later, and managed to stop him in West Wānaka Rd at 4.35pm, when he was taken into custody.
A reporter at the scene said after speaking with officers, the man was taken into the back of a police car with his hands behind his back.
Three police vehicles were at the location when the man was taken into custody and another three squad cars were earlier seen elsewhere in Mt Aspiring Rd.
The man was charged with aggravated failing to stop for red and blue lights, reckless driving, and driving while licence suspended.
His blood alcohol was also tested but it came back negative.