A TOWNSVILLE taxi driver accepted the fare of a lifetime after taking a half-naked passenger 1500km home to Tennant Creek.

The man in his 20s, who wore nothing more than a pair of silken boxer shorts and thongs for most of the 17-hour trip, hailed a cab outside Tom's Tavern on Nathan St on Thursday about noon.

He was carrying a small bag filled with money, and a carton of beer.

Veteran taxi driver Mike Caldwell, 68, who has been driving taxis in Townsville for 30 years, was more than happy to oblige after his passenger paid $4900 cash up front for the drive home to the Northern Territory.

It is understood the man, who is a well-known local, then withdrew more cash to take another taxi adventure.

Mr Caldwell described his passenger as a talkative bloke, who may have suffered a long-term mental disability.

"He did all the talking," he said.

"He told me he was once in a bad accident on a motorbike.

"Occasionally we would stop periodically for him to have a smoke."

After taking a pit stop for breakfast at the Three Ways Roadhouse in Tennant Creek, the pair encountered a pair of police officers who recognised Mr Caldwell's passenger instantly.

They told him a friend had feared he had gone missing, and was relieved he had returned home.

"I have no idea what he was doing in Townsville, but everyone seems happy he's back home in Tennant Creek," Mr Caldwell said.

Mr Caldwell, who will receive 50 per cent of the fare, described the trip as a unique experience, being able to drive across the Outback and be paid for it.

Read the full story from the Townsville Bulletin.