South Otago sub-area supervisor Senior Sergeant Richard Whitmore said armed police were called to Milton after sightings of a man with a firearm at a Union St property, near Subway restaurant, at 12pm yesterday.
The man was later reported to be walking around Milton but did not appear to have a weapon at that stage.
Police alerted nearby business owners of the situation and advised them to remain indoors.
Nine police officers attended and the Dunedin Armed Offenders Squad were on their way to Milton when Balclutha police arrested the man in Shakespeare St.
Snr Sgt Whitmore said police searched the Union St house and found an air rifle.
He said an 18-year-old Milton man was spoken to about the incident, but it was unlikely he would face charges.
Snr Sgt Whitmore said the incident highlighted the dangers of people possessing air rifles resembling firearms in public.
"Persons who own this type of weapon should ensure they do not use it in public. They should be sensible in how they transport and carry these weapons."
He said there had been incidents involving air rifles throughout the country and the Milton man's "irresponsible actions" in having the weapon outside his house had sparked public concern.
"We treat every incident as serious," Snr Sgt Whitmore said.
