Nelson Hospital went into lockdown this afternoon after reports of a man with a firearm in the area.
Police say shortly after 1pm, a man indicated to security staff at the Nelson District Court that he had a firearm.
The man left in a vehicle, which police found on Franklyn Street, near Nelson Hospital, about 1.15pm.
Police had advised Nelson Hospital to lockdown as a precaution.
Three people were taken into custody and are assisting police with enquiries.
Police say there are no ongoing safety concerns for the public and Nelson Hospital has come out of lockdown.