Police have appealed for witnesses after at least one shot is understood to have been fired in Chorley in the early hours of Saturday morning.
Officers were called around 3.25am to reports a firearm had been discharged in the street on Lightoller Close. No-one was injured and no property damaged.
Police say that following a number of inquiries, they later arrested a man in connection with the incident.
The 34-year-old man from Chorley was arrested on suspicion of possessing a firearm with intent and is in custody.
No weapon has been recovered.
Detectives are appealing for information and are particularly keen to speak to anyone who saw a blue BMW car being driven away from the scene following the incident.
The car, registration plate RX19 WXA, was later found parked close to the Minstral Pub in Lowerburgh Way, Chorley, around 5am.
Det Insp Jason Richardson, of Lancashire Police, said: “We are appealing for information following a suspected firearms discharge in Chorley.
“A blue BMW M2 was seen driving away from Lightoller Close and later recovered close to the Minstral Pub.
"We are particularly keen to speak to anyone who saw this vehicle between 3.25am and 5am. If you recall seeing the car, or anyone acting suspiciously in the area close to the Minstral Pub, please come forward.
“Incidents of this nature are extremely rare, the police take them very seriously and we have a dedicated team of detectives working on the investigation.”
Anyone with information can contact police on 101 or the independent charity Crimestoppers anonymously on 0800 555 111.