Police are investigating a gang fight in central Taupō this morning involving weapons, including a gun.

Police officers can be seen outside the ASB branch on Te Heuheu St.

A man across the road from the branch told an NZME reporter there was a fight between two groups of men.

"I didn't see or hear any shots, but one of them was waving a shotgun around," he said.

A woman who works on the street said she was "shaky as hell" after witnessing part of a gang confrontation on Te Heuheu St.

The woman said there was a group of patched gang members and another unpatched group wearing blue.

Police are attending an incident in central Taupo outside the ASB branch on Te Heuheu St on July 5, 2022. Photo / David Beck

The woman said she heard the commotion and went outside of her work when she saw a vehicle backing up and gang members fighting in the street.

"There was a lot of screaming and yelling ... stuff thrown and smashed windscreens."

She said road signs had also been picked up and thrown.

She said it was mainly verbal fighting until one man pulled out a gun and "started waving it around".

She said at that point everyone watching went inside, fearing a stray bullet.

The woman said she was "just pleased no one was hurt".

Armed police were now talking to witnesses and she said she was "shaky as hell, everyone is".

Another woman, who spoke on the condition of anonymity, said she saw a vehicle try to run over a group of people, and one person try hit those in the car with a pole.

She ran to the store door this morning to look at what was happening outside after someone said "call the cops".

She said she saw people pulling out road work poles to use as weapons.

She said there were "a lot of nervous people" in the city following the incident, and there was still a police presence.

Taupō Area Commander Inspector Phil Edwards said police were investigating a disorder incident on Te Heuheu St and there would be a continued police presence in the area.

The incident was first reported about 9.35am.

"A group of people, reportedly gang members, were seen fighting with weapons. A firearm was seen but at this stage, police do not believe it was discharged," he said.

He said the group left the scene before police arrived but officers were following lines of inquiry.

Police would like to hear from anyone who may have a video of the incident. This can be taken to Taupō Police Station, or call 105 and quote event number P051131577.

- More to come