Police said they were looking for a person of interest after a vehicle failed to stop for police in the Freyberg St area about 11.20am and a pursuit was initiated.
Police lost sight of the vehicle however it was later found abandoned in Newell St. Cordons were in place in the central business district and people were asked to avoid the area.
Nearby schools were notified as a precaution and anyone who sees anything suspicious is urged to contact police.
A statement on the school Facebook page said: "At the request of Kawerau Police, Tarawera High School has gone into lockdown as a precaution to an incident happening in the community close to the school."
"NCEA exams for this afternoon have been cancelled and NZQA notified. Senior students affected have been informed and appropriate processes will be followed to ensure they are not disadvantaged by the lockdown," the post said.
The school has asked parents to not come to school to remove students.