Police were called to an address in Spalding on Monday morning after reports of a man with what looked like a hand gun.
Officers went to Cathedral Drive and arrested three men.
“We are investing offences of them being in possession of an imitation firearm. Following a search of the address a ball bearing gun was found,” said a statement. “Police activity around the address must have been a concern for anyone seeing our officers who were deployed with firearms.
“We are grateful to the people who rang in reporting what they had seen. There is no ongoing threat and local officers will be visiting the community and the local school.
“Two men were released with no further action and the third was bailed while police continue their investigation.”