The Otago Daily Times was told seven police vehicles and more than a dozen police, including armed officers, descended on the Hillview Campsite in Ahuriri Flat Rd about 10am on Monday.
Officers searched permanent residences on the campsite and surrounding farmland and bush, before apprehending a 58-year-old male suspect, who was handcuffed and taken away without resistance.
Court records show police made the arrest on the basis of an unlawfully carried firearm and ammunition, and possession of drugs and drug paraphernalia.
An "AR15-type rifle and magazine" was seized, as well as .223 Remington ammunition, methamphetamine, cannabis and a methamphetamine pipe.
AR15-type weapons were used in the Christchurch mosque attacks in 2019 and are banned in New Zealand.
Yesterday, a police sniffer dog and handler could be seen on hillside property neighbouring the campsite, where they were believed to be searching for cached weapons or drugs.
"He was clean shaven and well dressed, and helped around the campsite, as I understand. It just goes to show you can’t tell from appearances," a local resident said.
The campsite owner declined to talk to the ODT, saying police had advised him not to.
A police spokesman said a 58-year-old man was arrested following a firearm sighting in Ahuriri Flat Rd on Monday morning.
The Armed Offenders Squad attended as a precaution.
The man was due to appear in the Dunedin District Court on February 4 to face drug-related charges and a charge of unlawfully carrying a firearm, the spokesman said.