UPDATE 10.40AM: A man is receiving medical treatment at Bendigo Hospital after this morning's incident.
Police have confirmed two officers drew weapons in the Long Gully incident, which involved a .22 rifle.
Sergeant Geoff Annand said no-one had been injured, but said a man in his 30s was receiving treatment.
"We're just waiting to see if he's fit to be interviewed," Sergeant Annand said.
He said officers had been professional in their handling of the matter.
"The two police members at the scene acted with great constraint," he said.
"And through good policing, nobody was injured in the incident."
Police said the man had waved down a police vehicle just before 8am.
"When the Bendigo unit stopped, he lifted his shirt to reveal a firearm tucked into the waistband of his pants," a statement said.
"Police have then driven the van from the immediate area and the man has put the firearm in the yard of a nearby property.
"He was then arrested by two police officers who had drawn their firearms."
Police are seeking witnesses to the event.
The man is described as about 175cm tall with a thin build and long, straggly black hair.
He was wearing a t-shirt and blue jeans at the time.
A second man is assisting police but is not facing charges.
Anyone with information should call Crime Stoppers on 1800 333 000 or visit www.crimestoppers.com.au
EARLIER 8.20AM: A MAN has pointed a sawn-off rifle at police in Long Gully this morning.
A witness to the incident, which occurred in Derwent Drive at about 8am, said the man had been "ranting and raving" and claimed to have Chopper Read's gun.
"The officers were just telling him to put his weapon down," Michelle Williams said.
"I just heard a lot of screaming and he said he had Chopper Read's gun.
"He said he had taken it from a museum."
Ms Williams said at least one officer had drawn their weapon.
"He was screaming really loudly," she said.
"It was so early that there weren't a lot of people out.
"It was half an hour later it would have been a different story."
Michelle said the area was generally incident-free.
"I've got faith in the local police," she said.
"When they're here it's fine."
Officers placed a weapon in the back of a police van.
The handle of the gun appeared to have been wrapped in tape.
One man was taken into custody and was heard screaming from the back of the police vehicle.
At least four police vehicles and about 10 officers responded to the incident.
Nearby resident Robert said he had lived in the area for 20 years.
He said while there were some incidents, it was generally quiet.
"We had a couple of problems early on in the piece with people and drugs," he said.
"We don't really have any problems.
"You stick to yourself.
"The young bloke (down the road) is a bit of an idiot.
"It's the last thing I expected here.
"The police do a bloody good job I reckon."
The man is being processed at Bendigo Police station.
Police are door-knocking the area.
"It's early days yet," Acting Senior Sergeant Bruce Simpson said.
"We've got one male in custody.
"We're just trying to work through what happened."