Pubs and bars in the seaside resort of Blackpool were put into lockdown last night after a car collided with a crowd of revellers.
A 19-year-old man from West Yorkshire has now been arrested over the incident, although further details have not been given.
Onlookers said the driver had left a nightclub shortly before the incident unfolded.
Three people were treated by the North West Ambulance Service shortly before midnight. Their injuries are not thought to be life-threatening.
The arrested man has been detained on suspicion of dangerous driving, drink/drug driving and grievous bodily harm. Many people were trapped inside pubs and clubs until police gave the all-clear for them to leave.
A woman who was caught up in the drama told the Blackpool Gazette that she is 'one of the luckiest people alive'.
Kinga Gil, who works at Viva Blackpool, says she had only seconds to react after seeing a car heading straight for her on the pavement.
"Unfortunately I was one of the people who saw what has happened today. I was walking back from work to my mum's car as I was going to get picked up. As I am getting closer to my mum's car I see a car coming straight towards me crashing into the white and red gates and everything on its way. It was horrible and I had a matter of seconds to get out of the way.
"Honestly I am one of the luckiest people alive I got out this without a scratch. I am in such a state of shock that I can’t even remember how I got back to my mum's car as I ran in a complete opposite direction."
The incident is not being linked to terrorism and police have appealed for anyone with footage to contact Lancashire Police on 101 quoting log 1862 of April 14.