Police have arrested two people following the circulation of counterfeit notes in Rotorua over the past two months.

Detective Sergeant Nathan Marten says two people were taken into custody and equipment used to make counterfeit $10, $20, and $50 notes was seized on Tuesday.

An 18-year-old man and a 22-year-old woman are due to appear in Rotorua District Court today on two charges of possessing forged bank notes, one charge of forging bank notes, and one charge of possessing implements to make counterfeit banknotes.

Nathan says police work hard to hold offenders to account and are happy to see the circulation of counterfeit notes through these machines stopped.

"If you believe someone is trying to pass you a counterfeit note, do not accept it and notify Police.

"The notes are printed on paper which can tear easily as opposed to legal tender which is printed on polymer.

"When accepting cash retailers are advised to take a 'look, feel and tilt” approach to identify a genuine banknote."

Information on this can be found on the Reserve Bank of NZ website.

If you find you've already received a counterfeit note, Nathan says put it in an envelope to avoid handling it further and get in touch with Police.

You can phone Police on 105, or you can also give information anonymously through Crimestoppers on 0800 555 111.