Acting Senior Sergeant Simon Reay said police were called to reports of a 32-year-old man with a handgun and machete in North East Valley on Saturday at about 3.15pm.
Police attended the incident in Crown St.
They arrived, armed as a precaution, and located the man.
"He was found to be in possession of a knife which he had stashed in a letterbox before leaving the address."
Reports had indicated the man was in possession of a handgun, however turned out to be false as the man had been waving around a "small handheld vacuum".
On Saturday the Otago Daily Times spoke to a resident who said watching the arrest was "crazy".
"We just saw it, someone was running, police were just everywhere and the owner of the car being searched is now sitting in the back of that police car . . . it was all very quick.
"They just showed up, stood around the corner with guns and the man who got arrested was just driving down the road.
"They popped out, got him out of the car and it was all over, next thing the man was on the ground being arrested," he said.
