Gateshead had started the game well with Christoph Ascherl and James Curtis both going close.
On 19 minutes a defensive error by Jim Provett saw the Gateshead keeper kick a clearance straight at Curtis, which Gregg Blundell took control of.
Curtis was then judged to have tugged the shirt of Blundell and the referee was quick to award a penalty and harshly send off Curtis.
Blundell scored the penalty to give Chester the lead. Gateshead switched things around bringing on defender Chris Swailes for forward Steven Richardson.
Half Time: Chester 1, Gateshead 0.
Gateshead fought back in the second half, and despite being down to ten men managed to equalise through on-loan striker Michael Mackay on 51 minutes. Ascherl claiming the assist.
A right-wing cross by Neil Ashton though on 76 minutes say Nick Chadwick head home the winner for the home side. His fourth goal in seven matches.
Full Time: Chester 2, Gateshead 1.
Gateshead: Provett, Baxter, Curtis, Pelonde, Robinson, Richardson (Swailes 24), Gate (Phillips 79), Turnbull, Mackay, Ascherl (McDermott 63), One. Subs: Armstrong, Farman.