Armed police have cordoned some streets off in Greerton.
A caller told the Bay of Plenty Times the Armed Offenders Squad had been in the area for around an hour, accompanied by a large number of police cars.
He said the incident occurred near Mansels Rd.
A police media spokeswoman said a threat had been made during an argument between people known to each other.
"Police are speaking to the person who made the threat now," she said.