Up to 12 AOS members converged on a South Hill home in Wansbeck St in the early afternoon, after a member of the public reported seeing a man wielding a gun.
The woman, who lived at the house with her son, said both had firearms pointed at them as they tried to walk out of the house during the incident.
She did not want to be named because she feared unwanted attention.
''They swarmed up here pointing guns at me and my 2-year-old son as I walked out of the house,'' she said.
''Someone had informed the police there was a gun, when in reality it was my brother with a drill, drilling a hole in the side of my house.
''It's brought unwanted attention, my mum almost had a heart attack, they over-exaggerated and they found nothing here.''
She was arrested along with her brother. Both were released without charge about two hours later.
The woman told the Otago Daily Times she would make a formal complaint.
''It was just unnecessary and my son didn't need to witness that,'' she said.
''It's not the first time they have stopped here and it's just ridiculous and I'm getting sick of it.''
Detective Sergeant Hannah Booth, of Oamaru, would not comment on what was found at the house ''because there's ongoing investigations''.
She would not comment on whether the occupants of the house were known to police and she was not willing to comment on the details of the investigation.
She did say the armed offenders squad response was ''absolutely standard''.
''Any allegation that there were firearms involved we will take seriously,'' Det Sgt Booth said.
In addition to the ''full team of AOS'', at least eight uniformed officers were called to the scene, she said.
Det Sgt Booth was not aware of a complaint resulting from the police response.
And a police spokesman yesterday said police ''have no knowledge of any complaints to date regarding this callout''.
