Key Points:

Armed police are at a house in Napier where someone in possession of firearms is making threats.

The house is in Argyll Crescent in the suburb of Tamatea. A police spokesman says no shots have been fired.

Local woman Donna says she saw her neighbour across the road with a gun.

'He's right across the road, there's Armed Offenders in our front yard, and all over the place. The street's blocked off both ways. He's got a gun, but that's all I know really.'

Donna says police told her to stay inside her house while police sort out the dispute, and lock the doors.

It is the second AOS call out in the suburb in less than 24 hours. Police were called to Tyrone Place yesterday afternoon when a man was seen chasing another man with a gun.