Both vehicles head onto the rocks. The police ute can be seen to get ahead of the other vehicle as it appears to try and block it off.
However the fleeing driver does a U-turn and heads back to the beach.
Carly Schoushkoff, who videoed the action, said she was on the deck of a friend's house at the bay having breakfast when they heard the siren.
"The next thing there was a police truck chasing another car through the water onto the rocks.
"It was the best action ever and just like watching a movie."
Schoushkoff, from Devonport, has spent holidays at the beautiful bay over the last 10 years but said it was one of the more unusual incidents she had seen.
She said the police vehicle blew a tyre while on the rocks and the officer stopped back on the beach.
The rocks can be navigated at low tide to gain access to smaller properties around the coast.
It was unclear as to wether police had subsequently tracked down the driver.