Jamie Stephen McGlashan, of Gisborne Lane, was on the scene in January when two children died in a horror crash involving an unlicensed driver, Dubbo Local Court was told.

His lawyer said that was one of the reasons he decided to stop during Wednesday's chase, before he was arrested.

McGlashan was on parole when he was spotted speeding around Wellington in an unregistered and uninsured Mazda 6, on February 10, the court heard.

Court documents revealed the 43-year-old, had never held a driver's licence, when police were alerted by concerned residents who witnessed a red hatchback driving erratically.

Police attempted to stop McGlashan at 9.47pm when he turned into Warne Street, near where two boys aged, six and seven were killed in a crash five weeks earlier, before he accelerated harshly onto Raymond Street.

A pursuit was initiated after McGlashan "continued to accelerate away from police, showing no intention to stop".

Travelling at a speed of 110kmh through the 50kmh area, McGlashan failed to slow at the give-way sign at the intersection of Gisbourne Street.

Police said they were forced to terminate the pursuit after they lost sight of the vehicle, however, shortly after located the Mazda on the side of the road in Percy Street, with McGlashan ducking down in the driver's seat attempting to hide his face.

Searches of the vehicle uncovered a black syringe box, and a small piece of foil containing a resealable bag of vegetable matter, believed to be cannabis.

Police claim McGlashan was slurring his words and clumsy on his feet, when he was arrested.

A female passenger was located in the car, who according to police appeared "fearful of what had occurred". The passenger told police she had asked McGlashan to stop, but was ignored.

Further checks of the Mazda revealed the front and rear registration plates were different, the back belonging to a 1998 Daewoo sedan. It was later revealed the Mazda registration had been cancelled in May last year.

McGlashan later returned a positive test result for methylamphetamine during an oral fluid test taken at the town's police station.

He was charged and pleaded guilty to failing to stop during a police pursuit; using an unregistered car; using an insured car; driving while never having held a licence; possessing a prohibited drug; and using a car with an unauthorised number plate.

Making a bail application at Dubbo court on Thursday, defence lawyer Toshi Weller-Wong argued the speed was the only aggravating factor, and the offences fall in the lower end of the criminal calendar.

"He is apparently schizophrenic and has not been on his medication for a number of days because he has run out of money," Mr Weller-Wong said.

The court heard McGlashan witnessed and was on the scene in the aftermath of the crash which killed the two children in January.

"He instructs me it was at the forefront of his mind ... that's why he decided to stop," Mr Weller-Wong said.

Police argued McGlashan placed the community in "extreme danger" by his actions, had a bad traffic record history and continued to ignore court orders.

"His manner of driving and the speed he drove at placed the already mourning community of Wellington in significant danger," the prosecutor said.

Magistrate Gary Wilson granted McGlashan bail with conditions he be of good behaviour, not drive, and report daily to police.

The matter will return to court on March 31 for sentencing.