Police said a man was arrested shortly before 2am today and has been charged with kidnapping.
The incident in Motueka St unfolded on Monday morning with several schools and the hospital going into lockdown.
A 56-year-old man is due to appear in Nelson District Court today.
Tasman district commander Superintendent Tracey Thompson said the other person inside the house was safe and uninjured.
Thompson said all cordons had been lifted and Motueka St had reopened.
She said "significant" police resource, including staff from Wellington and Canterbury and a negotiation team, were deployed in Nelson.
"We understand this was a distressing incident for those involved, and those victims are being offered ongoing support."
She thanked the community for their patience and cooperation.
