In [Distrance-regular Cayley graphs on dihedral groups, J. Combin. Theory Ser B 97 (2007) 14--33], Miklavič and Potočnik proposed the problem of characterizing distance-regular Cayley graphs, which can be viewed as an extension of the problem of identifying strongly regular Cayley graphs, or equivalently, regular partial difference sets. In this paper, all distance-regular Cayley graphs over $\mathbb{Z}_{p^s}\oplus\mathbb{Z}_{p}$ with $p$ being an odd prime are determined. It is shown that every such graph is isomorphic to a complete graph, a complete multipartite graph, or the line graph of a transversal design $TD(r,p)$ with $2\leq r\leq p-1$.