The Dun Mountain ophiolite and related oceanic-arc rocks (Otama Complex) formed above a westward-dipping subduction zone within Panthalassa, with implications for the emplacement of Cordilleran-type ophiolites and arcs elsewhere. The ophiolite is overlain by the Mid–Late Permian Upukerora Formation (up to 850 m), a predominantly very coarse breccia-conglomerate that mainly accumulated by mass flow. Lesser amounts of sediment accumulated from turbidity currents and as background hemipelagic sediments. The succession unconformably overlies ophiolitic basaltic or, rarely, gabbroic rocks after a regional hiatus. Much of the coarse clastic debris was derived from the underlying ophiolite. However, clasts of plagioclase-phyric basalt, felsic volcanics and quartz-bearing intrusive rocks, including plagiogranite, are over-represented compared to the ophiolite. The evolved igneous material was derived from an incipient oceanic arc (the Otama Complex) that bordered or covered the ophiolite, especially in the south. The coarse clastic material accumulated following the activation of north–south-trending, subaqueous, extensional growth faults within the underlying oceanic crust. Large blocks of mainly basalt, diabase and gabbro were also shed down fault scarps from relatively shallow-water to deeper-water settings. Fault-controlled talus accumulated soon after Mid-Permian docking of the ophiolite and oceanic arc with SE Gondwana to initiate the Mid-Permian–Mid-Triassic Maitai continental margin forearc basin.