A nearby resident told the Otago Daily Times he saw two carloads of men pull up in Market St and the occupants rush towards a man walking along Prince Albert Rd.
"I saw a skinhead fella run over to him and attack him; punching and bashing, and they both ended up in the middle of the road fighting like hell."
The victim then ran in the direction of Bayview Rd, pursued by members of the group.
Meanwhile, police received several calls from the public about the incident, including a report that a male was brandishing a rifle at people within the group shortly after 5pm.
A large number of streets were cordoned off as the AOS arrived to find the man who allegedly brandished the firearm. About a dozen squad members could be seen taking positions near the corner of Market St and Prince Albert Rd.
More than an hour later, a squad member could be heard using a loudspeaker to call the man's name and asking him to come out with his hands above his head.
After more than a dozen requests, the door of a two-storeyed house was forced. A loud bang was heard. Senior Sergeant Mel Aitken confirmed a high-powered air rifle was recovered from the address.
The 30-year-old man sought at the property handed himself in at the Dunedin Central Police Station shortly after 9pm. He has been charged with unlawful possession of a firearm, and is expected to appear in the Dunedin District Court today.
Police were speaking to several people in connection with the incident. They were helping police with their inquiries.
The people involved in the altercation were known to each other and "it may have been a retaliation-type attack" following an incident several weeks ago, Snr Sgt Aitken said.
She reminded people that armed incidents were taken seriously by police, and the public must follow police orders.
Dozens of onlookers and people not following instructions caused problems at the scene, she said.
People not complying with police instructions could be charged, she warned.
