Update: 3.30PM: Witnesses suggest three people have been detained by police amid reports of an armed standoff near a Coromandel marae.

A Kennedy Bay resident said there was an armed standoff in the Kennedy Bay area, and the roads had been locked down.

Photo: file.

The man, who did not want to be named, said he had heard there were four men ranging in age from their 20s to 40s were taking "pot shots" at each other.

"I've seen two Westpac helicopters flying over the area, and it looks like police have called the armed offenders squad in to help, too."

The resident said people were being kept safe at the Harataunga Marae, where a number of people had stayed over the long weekend.

A witness in the area said police had made arrests and that one of the those arrested is a gang member.

Another woman said she had heard that police had three offenders at the marae but a fourth man was on the loose.

"All we've been told is there's another local man running around with a gun apparently, or he might be hiding."

She had heard from someone in Thames that around 10 police cars had been seen heading north earlier today.

Another woman said she could see police talking to about half a dozen local young men next to a fence at the marae.

She had not heard any shots, but she had been mowing the lawn so that was not surprising.

"It was about lunchtime when I saw all the cop cars coming in and helicopters flying around over the top of us."

Several roads had been cordoned off in the area, he said.

ONE News is reporting the incident is connected to the Rebels Motorcycle Club.

A staff member at Harataunga Marae told Radio New Zealand "at least two people carrying guns discharged their weapons".

They said shots were heard about midday and he had locked the marae gates until the situation was over. He said 30 people were at the marae, including 15 children.

A Kennedy Bay Rd resident, who wanted to remain anonymous, said she was not surprised there had been a stand off.

"Living over here you get to know what's what," she said.

"It's not a bad place, but every place has their bad eggs."

Considering it had been a long weekend, she said there were a lot of people from out of town in the area.

A resident who didn't want to be identified said: "I don't know anything. Two families are fighting. I just want to stay out of it."

Oamaru Bay Tourist Park manager Ana Cooper said she had seen a police car speeding in the direction of the marae, just down the road from the park.

It seemed to be headed up the Koputuaki Hills, she said.

Kennedy Bay Rd resident Peggy Harrison said three police officers and a sniffer dog were at the bottom of their property.

She didn't know what was happening but considering there was bush and pines around her property she said she was scared.

"It feels a bit scary, I don't really know the full story," she said.

Cordons were in place on Kennedy Bay Rd and her daughter and her husband couldn't get to the house.

She said she saw ambulance, fire services, police and what looked like the Westpac helicopter in the area.

A spokesman for Westpac Rescue Helicopter said a helicopter was on the ground at Kennedy Bay.

It was used solely to transport AOS crew from Hamilton to the scene and not for any injuries, he said. He was unsure if there had been any injuries.

A spokesperson for St Johns ambulance said they had been called to the scene but would not release any information.

"What I can tell you is that we were called to an incident in Kennedy Bay but no other information is available," she said.

She would not confirm if there had been any injuries.

A police northern communications spokesman said the situation at Kennedy Bay was ongoing, but police activity in the area was winding down.

He would not confirm whether any arrests had been made in relation to the gun activity.