Police have now left the Jade Pl area and the incident appears to have been resolved.
Armed police are at an incident in Pukehangi.
A resident of Jade Pl told the Rotorua Daily Post they could see several armed police officers and three police cars down the street.
The resident said they could see a police officer pointing a gun.
Earlier they heard what they thought were several gun shots, which was followed by a police officer walking a man down the street.
They said they would definitely not be going outside until it was over.
A police media spokeswoman said police were carrying out a "routine search warrant" in the area. Police would not provide any further details at this stage.