Nervous residents are hunkering down as armed police respond to an incident in which shots were fired at a house bus in the Coromandel.

Waikato police are currently in attendance at a Kopu-Hikuai Road, State Highway 25A, address after reports were received of a firearms incident.

A man has allegedly fired a number of shots at a house bus on the property.

AOS staff and the Eagle Helicopter are also assisting with the incident.

Residents are trapped in their homes as police block off the surrounding areas and school buses are being diverted.

Sarah Clarke's 13-year-old daughter wasn't home from Thames College at 5.30pm. Sarah received a text just before 5pm saying her teenager's bus had finally left school and was travelling via Waihi.

"I believe I heard gunshots, about [3pm], two lots [of gunshots]. But the helicopters are still here. [Police] have been around for ages."

Steve McLachlan says police with rifles have been near his house since 2.30pm.

"I can see them from my house. There is no traffic coming through. We've been told nothing [except] go home and stay put."

Police were stationed at the Kitahi Road intersection. Resident Amanda Yule felt safe as a lot of police were at the end of her driveway.

Yule says the area is rural, with plenty of space between houses.

"We've heard things through the grapevine of neighbours so we aren't sure how legit it is, police aren't saying anything.

"The helicopter was flying over our bushline, right next door to our house."

Police allowed Yule to pick up her children because she was heading to Thames and lives on the end of the cordon. Otherwise she would not have been able to get them.

Police are advising motorists and residents that Kopu-Hikuai Road is closed between State Highway 26 and Kitahi Road. The road is the only direct route across the lower peninsular.

Diversions are in place and are expected to remain for some time.

However, a media release from the New Zealand Transport Agency says Sha Kopu To Kikuai was now open.

Police initially reported schools were in lockdown but senior sergeant Pete Simpson says this is not the case. No further further information was available.

- Stuff