Davison faced court charged with offences including culpable driving and failure to render assistance.
He was remanded in custody to appear at the Melbourne Magistrates Court on August 3.
He was dressed in a blue pullover and had neat hair.
Davison did not comment during the hearing.
Early this morning a man watched in horror as his friend was struck and killed by a stolen car speeding through West Melbourne early this morning.
The woman, a 22-year-old from New South Wales, had only arrived in Melbourne on Friday night to visit her friend when the tragedy occurred.
While local residents rushed to help, the driver and any occupants of the stolen Toyota allegedly fled on foot.
Police this afternoon announced they had arrested a 21-year-old New Zealand man following the fatal alleged hit-run.
The kiwi has been living in North Melbourne, and was arrested earlier today on separate matters.
He was to be interviewed by detectives from the Major Collision Investigation Unit, police spokeswoman Natalie Webster said.
Major collision investigation group Detective Inspector Stuart McGregor said the man’s actions were “despicable” particularly for the victim’s friend.
“Unfortunately, as you can imagine, it was absolutely devastating for him. No-one should have to see this sort of event, especially to a friend of yours.”
Det Insp McGregor said: “This is one of the lowest acts you can commit on the roads”.
The King St crash, which left debris strewn the length of the block between Victoria and Hawke streets, happened about 2.15am as the pair were going to get something to eat.
“She stepped off first, he was late to step off, and then the car has come through the intersection.”
It was an absolute waste of life, Det Insp McGregor said.
He said there were indications the car was travelling “well over 100 km/h” and had gone through a red light.
Police would check CCTV of the area.
After the collision the car had carried on, hitting a tree and power pole before coming to a stop in Curzon St.
He said the Toyota was stolen from somewhere in Spencer St not long before the collision occurred.
“The driver has got out and just run away. No attempt the assist, no attempt to concern themselves with the welfare of the person that he or she had hit and just left them in the middle of the road while they take off.”
He said police had somebody in custody, arrested overnight, but he was only one avenue of enquiry and investigations were ongoing, including into the number of people in the car.
The person responsible could expect a 20 year jail term, he said.
“All she did was walk across the pedestrian crossing legally, and has unfortunately paid with her life because of someone else’s behaviour.”
The two friends had been playing Pokemon, but their phones were in their pockets at the time of the crash.
He asked anybody who knew anybody injured late last night to contact crime stoppers.