Te Kuiti residents have been asked to avoid the Duke St area as police investigate what was originally reported as a family harm incident in the small Waikato town.

A caller told the Herald they saw the armed offenders squad heading southbound towards Te Awamutu around 3.50pm.

Local Te Kuiti residents have reported that there was a man with a gun in the area.

The incident was reported around 1.45pm and cordons are in place throughout the town.

"Residents are to avoid the Duke St area or stay inside their addresses while police are doing area inquiries in Te Kuiti," a police spokesperson said.