His round beat the previous lowest score of 63 set by professional Greg Turner in January 1986 while he bettered the amateur record of 64 belonging to former St Clair golfer Phillip Conlon.
Balneaves (21) started from the 10th tee and was one over par after three holes with a bogey 4 on the 12th. However, then his assault on par began with eagles at 13 and 16 and birdies at 15, 17, 1, 3, 6 and 9.
"I am hitting the ball the best I ever have," Balneaves said after playing the final 15 holes in 10 under.
"I was not sure of the exact number, but I thought I must be close to a record and just kept it going."
Balneaves was a surprise omission from the Southland five-man team last November which was the catalyst for him to return to his best.
"I have put a lot of time and practise into my game as I was motivated to prove the selectors wrong."
Balmacewen is a happy hunting ground for the Southland youngster as he won the Otago matchplay title in a play-off on the course in 2005.
After starting the day on 150, Balneaves followed his 62 with a four under 67, putting him 5-under-par for the tournament. This was two shots ahead of Brent McEwan (St Clair) who for much of the event looked like making a welcome return to the winner's circle.
Mark Brooks (Queenstown) was third while Nick Borren (Windsor) finished in fourth place. Senior B honours went to Michael Worsfold (Greendale) while 15-year-old Kayne Wardell (Allan Grange) blitzed the intermediate field winning by an impressive 19 shots.
Mitch Bosley (Wanaka) set the early pace with 66 on Saturday morning, with McEwan, Borren and David Klein (Te Anau) also under par on 69.
Bosley carded a 78 in the afternoon and McEwan took the overnight lead with another 69, four shots ahead of Cameron Beel (Otago).
In the third round, Balneaves gained ten shots on McEwan with his 62 to come within two shots of the St Clair golfer.
In the final round, McEwan held the lead at 3-under-par after 10 holes but three bogeys and a double bogey meant he trailed Balneaves going into the final three holes. McEwan made two birdies and a par to finish but the damage was already done and the title went to Balneaves.
