Police and members of the armed offenders squad have responded to an incident in Frasertown, Wairoa.
Frasertown Tavern owner Paul, who did not wish for his last name to be used, said police have blocked access at each end of SH38.
He said a helicopter was on the scene as well as a number of armed offenders.
Frasertown School has gone into lock down.
The school was unwilling to comment any further on the incident.