Residents and police were shot at during the incident in Rayward Road, Dunoon last night.

Chief Inspector Susie Johnston from Richmond Police District said that it was fortunate that no one was hurt.

(Chief Inspector Susie Johnston at the Lismore Police station this morning. Photo: Simon Mumford)

"There were no civilian injuries, no injuries to police and no injuries to the fella who is now assisting us with our inquiries," she said.

A local 63 year old man who lives on Rayward Road, Dunoon is being treated at Lismore Base Hospital for a separate medical condition before being questioned by police as to the motivation behind last night's incident.

"We will be making extensive inquiries, both criminal and forensic, in relation to what has happened last night," said Chief Inspector Johnston.

This is how the drama unfolded.

At 9pm Saturday March 6, police responded to calls about shots being fired on Rayward Raod, Dunoon. Cars from Nimbin, Lismore and the Corrective Crime Scene were dispatched to investigate.

When police arrived more shots were fired as the situation escalated and police came under fire themselves.

Police in the the Nimbin police car had to exit and take cover behind the vehicle.

Chief Inspector Johnston said a female constable is to be praised for her heroics as she took cover behind the footwell of the vehicle while maintaining communication with police radio.

"This was essential so we knew what was happening on the ground."

A police sergeant managed to discharge her firearm in the direction of the offender who then disappeared.

Twelve (12) police then retreated back down Rayward Road for protection along with six (6) residents including children and pets whilst the Tactical Operations Unit was called.

In one situation a house could smell a fire so they were asked to stay in the bathroom of their house.

The Queensland Polair helicopter was called in to help along with the Dog Squad and Police Negotiators (if needed).

The 64 year old male was apprehended and is now assisting police with their extensive inquiries into how and why the incident occurred.

The man has been charged with with four counts of fire firearm at dwelling-house with disregard for safety, two counts of discharge firearm with intent to resist arrest, and two counts of fire firearm in or near public place. He will appear in Lismore Court tomorrow.

While it was a miracle no one was injured there was extensive damage to the Nimbin police vehicle caused by pellets from, what is believed to be, a shotgun. The Lismore police sedan had two bricks thrown through the windscreen and up to eight (8) houses were damaged with broken windows and shotgun pellets.

This morning there is a comprehensive level of support to those residents involved in the incident.

"They will be assisting us with making statements," Chief Inspector Johnston said, "Once the situation was resolved last night residents were brought back here making sure they had somewhere safe to stay because there is a crime scene out there which makes it difficult for them to go back to their homes."

Chief Inspector Johnston said "I am so proud of those police who showed the courage, the composure and the bravery to go out there and keep that community safe."

It is believed the man acted alone and there was no one else inside his house at the time of the incident.