Officers attended Kingsland Close, Shoreham, last night and detained a 36-year-old local man, who was taken to hospital with a medical condition.
He has since been discharged.
Read more: Teenager, 15, charged after outbreak of violence and disorder in town centre
A knife was seized and no one else was injured.
Sussex Police said the man has now been arrested on suspicion of possession of a weapon in a public place and is in custody.
A force spokesman said: “An increased police presence can be expected in the area while enquiries are ongoing.
“We would like to thank the public for their patience during the incident.”
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