Iqaluit RCMP responded to a "high risk, dynamic situation" that "unfolded quickly" in the city's 300 block on Sunday, according to a news release issued by the police force.
Residents in the area were forced to evacuate.
A man was arrested a short while later. He is in custody while the investigation takes place.
The Iqaluit RCMP extended thanks to local residents for their cooperation and patience during the incident.
No further details were released.