A police spokesman said they responded to a report of a firearm at an address on Oakland St at 11:30am.
The armed offenders squad responded to the scene as a precaution.
A man was found sitting in his vehicle out the front of the property and was arrested by Police.
There were no reports of injury to anyone involved, the spokesman said.
A cordon could be seen at the intersection of Oakland St and Tomahawk Rd.
Another unit at the intersection of Oakland and Duckworth St prepared road spikes but put them back.
A nearby resident said he saw three armed police going up the street
The incident was a bit intense as the area was usually pretty quiet, he said.
The Otago Daily Times understands other residents in the area heard shouted expletives followed by screaming before police arrived