RESIDENTS of Jindera were made to hide indoors on Tuesday afternoon following fears a man, possibly armed with a gun, had threatened one of the town's businesses.
Police said extra precautions were taken after they received reports the man had entered Jindera Rural Supplies on Adams Street and that he may be in possession of a firearm.
The road was blocked to traffic about 100 metres either side of the business while dozens of police officers worked to contain the situation.
After being arrested and searched, a 51-year-old Lavington man was deemed not to have a firearm.
One resident said police approached the business with their guns drawn.
"They were telling him to put his hands up and get down on the ground on his knees," the witness said.
"One person was arrested, but I didn't recognise him."
The incident was first reported as a domestic dispute at a house in Mitchell Street at 3.15pm.
Upon arrival, police spoke to a man and a woman who told them a family member had left and he was possibly in possession of a gun.
Police then went to the farming supplies business where a worker was evacuated and the man was found.
The intruder was arrested and taken into custody at Albury police station.
After the ordeal, police searched several vehicles and premises, including a car on Dight Street, but no gun was recovered.
Another resident said police cars swarmed the street for about 40 minutes to an hour.
"We were all yelled at to get inside," the woman said.
"It looked like a movie out here, there were police cars everywhere.
"It makes you feel a bit unsafe, there's something going on in boring old Jindy.
"I even had police in my veggie patch."
Albury Inspector Ian Youman said the investigation was ongoing.
"We can't say too much, we are delaying the investigation," he said.
"You can't interview people when they are intoxicated or drug affected."