Senior Sergeant Anthony Bond, of Dunedin, said a 30-year-old man wanted by police was located while exiting a vehicle on Niedpath Rd Mornington about 4pm on Friday.
He fled from police, making comments that he had a gun and would shoot officers, Snr Sgt Bond said.
He showed a firearm to police, stashed in his waistband.
That gun was later found to be an imitation.
However, the vehicle the man had been in contained a .308 firearm, along with various knives, clubs and a hatchet.
The man was taken into custody about midnight, after a protracted negotiation.
He had been charged with unlawfully having a firearm, possession of an offensive weapon and unlawfully getting into a vehicle.