The woman managed to free herself, but was initially too scared to leave the area in case the attacker was still there.
Detective Senior Sergeant Kallum Croudis told media yesterday that the public should be vigilant and report any suspicious activity.
Such crimes were rare in Dunedin, he said.
Scientists from the Institute of Environmental Science and Research had been called in to help examine the scene this afternoon.
Police said they had spoken to the owner of a light-coloured dog, but wanted to talk with anyone else who was walking a similar-coloured dog in the area about 9pm.
They urged anyone who was near Ross Creek at the time, or who saw a man matching the description, to come forward.
A team of more than 20 detectives and uniformed staff was involved in the operation and the area would remain cordoned off today.
Anyone with information can call the Dunedin central police station on (03) 471 4800 or anonymously via Crimestoppers on 0800 555 111.