A police spokesman said officers responded to reports of a firearm being carried by a man in Andersons Bay Rd about 12.20pm yesterday.
Officers, armed as a precaution, responded and located two men and an air rifle.
A 23-year-old man was arrested and charged with unlawfully carrying or possessing a firearm.
He would appear in the Dunedin District Court on Thursday, the spokesman said.
No injuries were reported in the incident.