Police later issued a statement that said a patrol car had spotted the woman's vehicle travelling at high speed along Pt Chevalier Rd.
By the time the officer had done a u-turn, he had lost sight of the speeding vehicle, but he came across the crash a short time later.
However, the local resident who spoke to the Weekend Herald said the police car, in pursuit, had gone past his house further up Pt Chevalier Rd at high speed.
"I thought it was just crazy, and unnecessary for them to be going so fast. I couldn't believe the speed the cop car was going."
The man said the noise the woman's vehicle was making and the fact it smashed straight into the corner dairy made him think the throttle might have been stuck.