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The 38-year-old local man was detained on Charterhouse Street at approximately 3.25am on Saturday 21 June.
Following the short pursuit by Hartlepool response officers, a search of his white Range Rover led to the machete being found.
He was arrested on suspicion of possession of a weapon, drink and drug driving and travelling without insurance.
His vehicle was subsequently seized, and officers transported him to custody for questioning.