Police were forced to intervene after a woman held an associate's sheep for "ram-som".
Senior Sergeant Craig Dinnissen said police received a report on Sunday of a woman withholding an associate's male sheep until she received a payment she believed she was owed.
The woman was told she could not hold the other person's property and had to return it.
Kiwis flocked to social media to poke fun at the situation.
"Ewe aren't even kidding. Wonder what the ramifications will be," one said.
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Another wrote: "What a dag! I hope she didn't bale them up."
A third joked: "I don't think they're telling us everything, they're trying to pull the wool over our eyes."
It's not the first time New Zealand sheep have been involved in a police incident.
In 2016, four fugitives who led police on a high-speed chase through Central Otago and Queenstown were arrested after they were brought to a halt by a flock of sheep on the road.
Police only managed to make an arrest after the four fugitives - three men and a woman - found their way blocked by sheep crossing a road outside Queenstown.
Ironically, the sheep belonged to a police officer. None were harmed in the line of duty.