Police have tracked a man wanted for firearms offending but are yet to arrest him.
The person was found at a rural Clutha property, and was believed to be alone, police said tonight.
The situation was "contained" and there was no risk to the public at present, they added.
This morning police were seen retrieving firearms from an overturned van, near where the manhunt was taking place.
A local resident told the ODT a man knocked on the door of his isolated property near Owaka last night asking for petrol.
The resident declined the request and the man drove off in a blue van.
This morning the resident saw the van overturned on a nearby road and a police officer was taking weapons from the vehicle.
When he stopped he was told police were now looking for the driver in Hunt Rd.
Police descended on a remote rural location in the Clutha district this morning searching for "a person of interest".
Police blocked Hunt Road, about 5km north of Owaka, and were turning locals back at the roadblock.
The armed police presence was reduced at around 4pm although one tactical ute remained and the road was still blocked.
Earlier about 15 armed police were at the scene, along with two ambulances, a dog team and officers in a van which is believed to be a negotiation team.
A police spokesman said this morning police were "working to locate a person of interest" in the Clutha District.
The officers were armed as a precaution and have cordons in place.
He said the community should report any suspicious behaviour in the area to 111.
A local said on Facebook they were asked to move by police this morning.
"Apparently something went down in Katea last night.
"No details but locals being asked to evacuate the immediate area with armed police and road spikes at road ends."
One local resident said he was returning to his home on Hunt Rd at about 9.30am when he was met with the police cordon near the intersection with the Owaka Highway and told he could not return to his property.
He had been rung by a neighbour who told him there was a "situation" developing at a property and police had been in attendance for a few hours.
Another local resident said the police callout had been a "wee bit of a surprise".
