Police have arrested one person following an incident on Te Ngae Road, Owhata, where Police were following a suspected stolen vehicle about 5.35pm.

An occupant exited the vehicle and fired at Police, hitting the patrol car.

Bullet hole in the taxi windscreen. Photo: Cameron Avery / SunLive

During the incident, a bystander, believed to be a taxi driver, received moderate injuries.

The alleged offender then threatened a person and took their vehicle.

"Further down Te Ngae Road, he then stopped at an address, where he took a second vehicle." said Inspector Brendon Keenan, Acting Rotorua Area Commander.

"That vehicle was followed by Police and was spiked, coming to a stop on State Highway 30 near Okatina Road.

"The alleged offender has been taken into custody and a firearm recovered.

"Police are continuing to make enquiries into the circumstances of the incident."