Armed police, ambulance and fire services were involved. It is believed that a hazardous material unit was also at the scene.
Police blocked off a section between Waitaha Road and James Cook Drive and traffic was being diverted.
The sister of a person who lives in the neighbouring house told the Bay of Plenty Times she received a call from the occupant telling her the road was cordoned off, that she had seen police enter a house, put some men on the ground, and point guns at them.
A reporter at the scene said the majority of police had now left but there are still half a dozen police officers there.