A woman has been charged in Sydney's south-west after she allegedly hit five cars while being pursued by police, with her two infant children in the back seat.

Police said the 33-year-old unlicensed driver, who was known to police, drove through a red light on the M5 motorway at the Heathcote Road exit at Moorebank.

She then failed to stop for officers shortly before 10:00pm on Saturday.

The pursuit began when the woman allegedly accelerated to 110 kilometres per hour in a 60 kph zone along Nuwarra Road into Chipping Norton.

It is alleged she sideswiped three cars during the police chase and then hit the back of another before mounting the kerb and hitting a van.

Officers said the car finally came to a stop in the front yard of a home.

The car finally came to a stop in the front yard of the home where the unlicensed driver was arrested.

The woman from Ramsgate was arrested and returned a negative roadside breath test.

Her two children, a 14-month-old girl and a three-month-old boy, were taken to Liverpool Hospital with their mother for precautionary checks.

Inspector Ken Hardie said the children were apparently properly restrained in baby capsules and were not injured.

"The children have been handed over to DOCS and I believe they are with their grandmother at this stage," he said.

After being released from hospital she was taken to Liverpool Police Station and charged with a number of traffic offences, including being an unlicensed driver and police pursuit, known as Skye's Law.

She was refused bail and will spend the night in custody, and is due to appear at Liverpool Local Court on Monday.

Man injured when his car was rammed

Inspector Ken Hardie said a man in his 20s was injured when the woman's car rammed into the back of his car while he was in it.

The woman has been charged with a number of traffic offences.

Inspector Hardie said the actions of the woman were "disgusting".

"It's very disgusting; it's very irresponsible of the woman to drive under those circumstances," he said.

"People have just got to use common sense when they've got children in the car especially. Your actions can [have quite an] impact on them."

A resident on Nuwarra Road in Chipping Norton, where the pursuit ended, who did not want to be named, described the scene.

"[There were] two cars up on the next door neighbour's front yard [and] police were on the scene within about five seconds flat," he said.

"They were out with guns pointed, [and] a woman left the vehicle, then a very short time after that she came out with her very, very, very young children."

He said he thought the woman panicked and ran from police and only stopped because her car was halted by the final collision, which left the man in the car with back injuries.

"It started at the bottom of the street ... she's been chased for a kilometre, and the only reason she stopped is because her vehicle was incapacitated, it wasn't going anywhere, it was shut down," he said.

The resident said the children seemed uninjured and were allowed to stay with their mother at the scene until an ambulance arrived.

"I assume they were restrained ... they came outside and they weren't really crying much," he said.

"They were probably uncomfortable because it was freezing cold last night."

Car centimetres from ploughing into room full of children

Resident Mark Pauli said the car was centimetres from ploughing through his lounge room and that it only stopped after hitting a van and bushes.

Mr Pauli said his family was in shock because his brother's five children were inside at the time.

"I respect the police and I know they've got a job to do," he said.

"But my concern really is that the police chase occurred in a residential area; it could've placed a lot of lives at risk, including my family as well," he said.

Mr Pauli said the man who was taken to hospital after being hit in his car was a pizza delivery driver.