KEY POINTS:
Two schools in Tokoroa went into "lockdown" mode yesterday morning when teachers and students saw a man wandering through the grounds brandishing what appeared to be a pistol.
He walked across the fields toward Maraetai Rd, before crossing the street and entering the Community Mental Health building at the hospital.
Police tracked him to the building and evacuated about 10 people from inside.
The armed offenders squad from Rotorua was called and after a short negotiation by loudspeaker a 34-year-old man gave himself up.
However the weapon the man was seen with was not found and police spent much of the day combing through rubbish at the local dump and checking stormwater drains.
Detective Sergeant Kevan Verry said that although no weapon had been located police had received information from a witness that it had been discarded in the area.
The arrested man was charged with illegal possession of an air pistol after admitting to carrying one, Mr Verry said.
Tokoroa Intermediate School principal Phil Straw said seeing a man with a gun had frightened teachers and pupils but offers of counselling would be made.
All classes were locked soon after the man was seen and nobody was allowed outside.
Teachers had acted professionally and calmly, Mr Straw said.
Phone calls were being made yesterday to parents to inform them.
Tokoroa High School principal Elgin Edwards said his school found out about the man only when the adjacent school phoned them to warn of what was unfolding.
"We extended our assembly for about an extra half-hour. We're thankful for the intermediate having the presence of mind to contact us but we would have expected the police would have done so.
"How can we respond to something if we don't know about it?"
Mr Verry said the drama unfolded after an altercation on Clyde St in Tokoroa. A person was approached by a group in a car and a fight took place. A short time later the car entered Tokoroa Intermediate by the back entrance on Billah St, and the man with the gun is understood to have exited the vehicle.