Jordan Ebert, 23, was granted bail at the Ballarat Magistrates Court on Friday after the Special Operations Group arrested him and a 20-year-old in Dana Street about 3.30pm.

Police informant Detective Senior Constable Julie Bruce told the court Ebert and co-accused Hayden Starky drove from their Beaufort home to Ararat at 1am on Thursday.

She said Starky placed a shotgun in Ebert's car and after travelling to Ararat, they stole two wheel rims and one car jack from a rural address.

Police allege Starky then took the shotgun from the car and shot a letterbox six to seven times.

Detective Senior Constable Bruce said Ebert discharged the firearm once, before giving it back to Starky who discharged further rounds.

The alleged incident occurred near a family home with two adults and four children, aged two to 14, inside.

The police informant said the incident was a result of a family violence incident involving Starky.

Police opposed Ebert's bail application but Ebert's lawyer Andrew Madden said his client had been caught up in the situation, which the informant agreed.

Mr Madden said Ebert was employed casually, had a stable address and a girlfriend in Beaufort.

"There are conditions that could be placed on bail to alleviate the risk of him being a flight risk," Mr Madden said.

Magistrate Letizia Torres said Ebert was young, had no relevant prior convictions and stable accommodation.

"There are compelling reasons to justify bail," Ms Torres said.

Ebert's strict bail conditions include reporting to police three times a week, live at a static address, not to leave Victoria and not to associate with the co-accused.

He was bailed to appear at a later date. Ebert faces six charges, including using a firearm without a licence, discharging a shot from a firearm and being a non-prohibited person possessing a firearm.

The court was told Starky was hospitalised due to injuries sustained during the arrest and remained in hospital on Friday.

EARLIER: Three men have been arrested just metres from the Ballarat police station following a dramatic manhunt that spanned throughout western Victoria.

The three men, two of which have been identified as from Beaufort, were arrested by plain-clothed police on Dana Street about 3.30pm on Thursday for an earlier fire arm incident on Warrayatkin Road, Dobie, following a 12-hour manhunt.

They were caught by police out the front of computer gaming store Guf, directly opposite the police station.

They were arrested while lying face-down on the footpath.

Two of the men have been identified as a 23-year-old and a 20-year-old, both from Beaufort.

They were apprehended by police from the Horsham Family Violence Unit.

Police would not comment further, other than to say an investigation was ongoing.

The 20-year-old has been charged with handled stolen goods, possession and discharged of a fire arm and criminal damage. He is set to appear in the Ballarat Magistrates Court today

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