Earlier, members of the Armed Offenders Squad and police dogs could be seen outside a property on Roger St.
Six people who were inside the house were talking to some remaining police officers outside the property.
Police are at the scene of an incident on Roger St in Western Heights. Photo / Stephen Parker
A man at the Roger St cordon said he got a phone call from one of his family members inside a neighbouring house who described to him what had happened.
He said he was concerned so had come home to try and get back to his house.
"I'm just trying to get home to make sure everyone's alright."
Western Heights Primary School assistant principal Ben McFarlane confirmed to the Rotorua Daily Post the school had been in lockdown, although this had now been lifted.
The lockdown was put in place about 11.30am, he said.
Police are at the scene of an incident on Roger St in Western Heights. Photo / Stephen Parker
"The gates are locked and the kids are in their classrooms. Our principal Brent Griffin is currently speaking with police," he said.
A Facebook comment said Roger St was blocked off at the intersection of Edmund Rd and a police car had sped passed on Homedale St.
People in the area had told the Rotorua Daily Post they had seen and heard the sound of gunshots and saw cars driving away from the area crashing into each other.