A suspect fled in a Mercedes at speed and drove the wrong way on Nelson St before turning right and heading onto Victoria St West.
Meanwhile, an unsuspecting motorist slowed for a pedestrian on the road and flashed his car's headlights at her, signalling her to finish crossing.
As she ran out to cross she was hit by the Mercedes with such force she was "flung into the air", landing by the edge of the road.
She suffered multiple fractures to her head and a broken elbow, as well as severe bruising.
According to the report, the offender did not stop and continued driving in a bid to evade police.
Three police vehicles passed the injured woman shortly afterwards but none saw her on the ground and all continued to follow the fleeing driver.
"It is possible that two parked cars obscured their view," the IPCA report reads.
As bystanders rushed to help, the fourth passing police vehicle turned back to investigate.
A CCTV operator later told the authority when he was observing the Mercedes live it was travelling too fast and he did not see the woman get hit.
The report ultimately found: "The police responded to the hit and run as soon as they were aware of it, in a timely and appropriate manner."
Auckland City District Commander Superintendent Karyn Malthus said fleeing driver incidents were fast-changing incidents.
As the IPCA's report found, officers in one of the pursuing vehicles stopped and turned around as soon as they were aware a person had been hit, she said.
"Our staff spoke with the injured woman and ensured an ambulance was on the way, which was deemed appropriate."
The woman was hospitalised with serious injuries and later recovered.
A 41-year-old man was subsequently charged with careless driving causing injury in relation to the incident, she said.
