Residents locked their doors and closed windows after Warwickshire Police sealed off Railway Crescent and The Sidings.
A Warwickshire Police spokesman said in a statement last night: “Armed officers were deployed to Railway Crescent, Shipston this morning after receiving a report of a man with a firearm.
"After carrying out checks at a property and speaking to the man no firearm was discovered and they were satisfied no offences had been committed.”
The Shipston Noticeboard on Facebook attracted scores of comments as townsfolk speculated over the cause of the urgent police activity. The original post on the noticeboard reported that police had insisted ‘a sterile environment must be maintained’.
Some reported being escorted away out of the streets in order to attend appointments. Others were told by police earlier today that they would be there ‘for some time’.
It is understood armed officers surrounded a house and one woman said a neighbour had been seen with a firearm.
Contributors later said the roads had been reopened and some reported the incident as being caused by a hoax.