The residents praised the efforts of police, and said they understood the reasons behind the inconvenience of being locked into their homes or out of their area.
A 19-year-old Mosgiel man was arrested yesterday morning following the incident, in which an area around Lowburn was in lockdown on Wednesday afternoon.
Cordons were in place around Lowburn and Mt Pisa, and residents were advised to lock their cars and stay inside.
The man was found at a property in Cromwell just before 8am yesterday, a police spokesman said.
Central Otago sub area supervisor Senior Sergeant Ian Kerrisk said the man had appeared in the Queenstown District Court yesterday and would appear in the Dunedin District Court today.
He is facing charges relating to an incident in Dunedin on Tuesday evening, and a firearms charge relating to the events in Lowburn on Wednesday, Snr Sgt Kerrisk said.
About 35 police staff from throughout Otago were involved in the incident. They included armed offenders squad members and police negotiating team members from Dunedin, plus dogs and their handlers from Invercargill. A police helicopter, drone and road spikes were also used.
Snr Sgt Kerrisk praised the professionalism of the police team and the patience and assistance of the public.
"Events of this nature are thankfully very rare in our area and we are very grateful for the support that was immediately available from the public.
It is always the safety of all people, including the subject that we were seeking, that is our priority, and we are very pleased that we were able to resolve the incident without further incident."
Snr Sgt Kerrisk further praised Lowburn residents for "keeping themselves safe".
Residents spoken to by the Otago Daily Times said they had phoned neighbours to check they were safe, and moved farm staff out of remote areas.
Snr Sgt Kerrisk said he also wanted to remind people there had still been a "visible police presence" throughout the rest of Central Otago while the armed operation had been taking place in Lowburn.
