The former Scottish Youths’ international claimed the honour from 2011 Scottish PGA champion Alan Lockhart as he carded a seven-under-par 62.
The effort, which helped him win the stroke-play championship at the Stirlingshire club, included seven birdies, an eagle and two bogeys.
“It is a hard course to score low on,” said Betfred and Scottish Cup-winning Saints boss Davidson, who has been a Dunblane New member for 34 years and plays off plus three.
“My uncle, Alec Wilson, held the course record for ages with a 64 and I have always wanted to beat him! The closest I had come before was a 65.
“I have hardly played any golf this year but managed to beat the record in windy conditions. I actually bogeyed 15 - the easiest hole on the course.”
The 44-year-old is a three-time champion at his local club.