Local Michael Cleary said residents were notified about 7am  that police were looking for a couple who had allegedly fired on a police car after crashing their own stolen vehicle in the area.

Householders were told to lock up their homes and those that felt unsafe could leave.

Some took up the offer.

However Mr Cleary said most people stayed and were rather bemused at the new-found interest in the old hydro town.

"These things affect different people different ways," he said.

"Some people were I think a bit alarmed. One young lady, one of our schoolers, was heard to say 'finally something's happening in Poatina."

Residents were told about 11.45am the couple had been caught.

About 2km up the mountain, what police say was the car stolen by the couple is being examined by forensic officers.

A green shotgun shell lies in the middle of the road near the car.

The Ford sedan appears to have spun out of control and has gone over a small embankment.

Two wheels are down to the metal and the passenger side window has been smashed.

The couple have been taken to Launceston Police Headquarters to assist detectives with their inquiries.

They have not been charged with any offences.