A Far North beach settlement was reportedly rattled by gunshots early yesterday evening as a rumoured road rage incident took a sour turn.

Armed offenders squad (AOS) members cordoned off a portion of Matauri Bay Rd near Te Tapui Rd after first attending around 5.20pm on Thursday.

Locals later said Matauri Bay Rd, Te Tapui Rd, and Matauri Beach Rd were closed as police searched for those involved.

Residents in nearby homes were told by police to stay inside and lock their doors.

The exact details of what unfolded remain unclear, however, locals say the incident was the result of road rage.

Police are yet to comment on what took place.

A police spokesperson said AOS attended as a precaution.

Motorists in the Bay of Islands reported seeing a large cohort of police cars, sirens blaring, headed north through areas like Kawakawa, Waipapa and Kerikeri.

One person described seeing a police officer in Kerikeri don his bulletproof vest before dashing off.

A police spokeswoman this morning said units approached an address which was cleared around 8.45pm.

“Police spoke to those at the address however no arrests have been made at this stage.”