Earlier, Armed Offenders Squad personnel were present as police cordoned off a section of streets in the North Otago town.
Several armed police, a dog squad and at least eight marked police cars were at the scene in Percy St for several hours, which was cordoned off between Argyle St and Charles St.
A police spokeswoman told the Otago Daily Times police "were working to apprehend a wanted individual" that was believed to be at an address in the usually quiet suburban street.
The arrest was said to be in relation to a number of outstanding warrants and that the individual would be facing several charges in the coming days.
The Armed Offenders Squad had been called in from Dunedin as a precaution, she said.
An armed officer guarding the Argyle St intersection was controlling traffic in the area and stopped each vehicle as it passed, asking drivers what their destination was.
A reporter at the scene was asked by the officer to "move on quickly" due to safety concerns.
A Percy St resident, who did not want to be named, said they did not realise there was any drama unfolding until they noticed people congregating in the area.
The person said they had been told the incident may have been related to a vehicle accident in Weston early this morning, when a car struck a power pole outside Ludemann Motors in Main St about 1.45am.
Police and members of the Weston Volunteer Fire Brigade attended the scene, but the car's two occupants had left before they arrived, emergency services said.
Power lines had fallen but were not touching the road.
Firefighters applied foam to fuel left on the street and helped with traffic control.
A police spokeswoman said police spoke to one person after the crash.
He was not charged and police were continuing their inquiries, she said.
