Gunman on the Run After Threats and Van Fire in Dulwich Hill

A gunman who threatened members of the public in Sydney's inner west remains at large after a chaotic scene unfolded in Dulwich Hill on Friday morning.

Police were called to the area near Williams Parade at about 10:20am after reports of a stolen vehicle in a car park. Officers were told a man armed with a shotgun was inside the van, before setting it alight and fleeing down Union Street towards Laxton Reserve.

Police Response

Riot squad officers, officers in bulletproof vests, and a helicopter responded to the incident. Nearby residents were told to stay indoors, and one school was placed into lockdown as part of the response.

Forensic investigators were at the scene to "glean any information from that vehicle", Superintendent Despa Fitzgerald said.

She said no shots were fired despite earlier reports, although members of the public were threatened.

Search for the Gunman

Police have described the man as Caucasian, in his 20s, about 160 centimetres tall, of a short build with shaggy hair wearing a blue T-shirt and long black pants.

Superintendent Fitzgerald said anyone who sights the person of interest should contact Triple Zero (000) and anyone with mobile phone or dashcam footage should share it with investigators.

Community Impact

Local resident Charlie was told by police he could not return to his home for a couple of hours.

"They've locked everyone down in the street," he said.

He said neighbours witnessed a man in a stolen car before they followed him onto the street and then he "burnt out the car".

The Transport Management Centre said light rail services that had been cancelled between Dulwich Hill and Lilyfield had since resumed.

NSW Police lifted the exclusion zone in the area about 2pm.