An armed man who allegedly opened fire at pedestrians before taking a hostage and barricading himself inside a shop in Windang is now in police custody.
Police were told a 40-year-old man– armed with two firearms – had opened fire at passing vehicles and pedestrians, before fortifying himself inside a nearby dive shop.
The armed man allegedly held the shop owner against his will before releasing him safely and without injury.
Officers from Lake Illawarra and Wollongong Police Districts, with assistance from the Tactical Operations Unit (TOU), Police Negotiators and Dog Unit, established a perimeter.
After a period of negotiations, the armed man surrendered to police and was taken into custody just before 10.30am.
He has been transported to Lake Illawarra Police Station as inquiries continue.
A crime scene has been established at the dive shop, and at a home at Windang.
Both properties will be examined by specialist forensic officers and police from the Rescue and Bomb Disposal Unit.
There is no ongoing threat to the community and no injuries have been reported.
Local road closures will remain in place for several hours.