Photo: Twitter@victoriapolice

Emergency services were initially called to the Nepean Highway, near Kangerong Avenue, following reports that a gunshot was heard about 8.10pm.

Local police, with the assistance of the Dog Squad and Critical Incident Response Team, set up a cordon at the holiday park about 9.30pm.

A 51-year-old man was taken into custody without incident about 11.25pm.

It has since been established that an alleged altercation occurred between the man and another male earlier in the night.

That male was arrested for drunk at the same location prior to a cordon being set up.

He received treatment at the scene for minor injuries.

It is understood all parties involved are known to each other and there were no further reports of injuries.

The 51-year-old’s accommodation at the park was subsequently checked and a firearm was located, however at this stage there is no evidence to suggest it was used during the alleged incident.

The Dromana man has been charged with prohibited person possess firearm and will face court at a later date.