A knife was found inside a car by police officers who had been originally responding to a separate incident.
A large police presence in Shenley last night was initially caused by a driver who was seen to make off from officers on patrol.
A dog unit and helicopter were called in after those inside the runaway vehicle later fled on foot into a housing estate.
While on the estate, officers came across a second vehicle, which three people got out from - two made off.
A knife was seized from the second vehicle.
A Hertfordshire Constabulary spokesperson said: "Just after 9pm on March 23, a vehicle of interest made off from officers on patrol in Shenley.
"The vehicle came to a stop in the Porters Park estate and the occupants ran off.
"A search of the area was carried out, with assistance from the dog unit and police helicopter."
The spokesperson continued: "While officers were in attendance, three people were then seen to exit a second vehicle in Nell Gwynn Close. Two made off and one was detained.
"A knife was subsequently located inside the vehicle.
"A 24-year-old man was arrested for possession of a bladed article. He has been released under investigation while enquiries continue."
Police say enquiries are continuing into both incidents with an unconfirmed number of people who fled from police still on the run.
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