A man has been arrested following reports of a young girl screaming in the back of a car on Monday.
A large police operation was put in place after the incident was reported at around 11:00 BST outside Ysgol Uwchradd Aberteifi in Cardigan, Ceredigion.
The child had been described as aged eight to 12. House-to-house inquiries were undertaken as part of the inquiry.
A local man has been arrested in connection with an assault.
A spokesman for the force said: "Dyfed Powys Police would like to thank the public for their understanding and cooperation during a large scale police investigation that took place in Cardigan yesterday and today.
"Police were investigating a report of an altercation outside Cardigan Secondary School, where a child was reported to be screaming in the back of a car.
"We can now confirm that we have arrested a local man in connection with an offence of assault and are no longer looking for anyone else in relation to this matter.
"We are grateful for the cooperation of the people living in and around Cardigan who assisted us with our inquiries. We realise the impact that the influx of officers into the town had on the community, but it was necessary in order to fully investigate the matter."