A 22-year-old man has been arrested for allegedly firing a gun at a Yalwal camping ground.
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At about 11.50pm on Saturday, two groups of campers were at the site, when one of them allegedly began performing burnouts in a 4WD nearby.
An argument broke out between the groups, during which the man allegedly fired a shot into a nearby tree.
Several bystanders left the grounds and called police.
Officers from Shoalhaven Local Area Command attended and began an investigation into the incident.
Police found the man in a car on Yalwal Road and seized his .270 rifle.
About 8.30am on Sunday the man who is from Glen Alpine, went to Nowra Police Station where he was arrested.
He has been released pending further enquiries, but police said they expect to lay charges and his firearms licence will be revoked.