Witnesses told The Daily Advertiser a grey Commodore collided with a white car near the pedestrian crossing on the southern block of Baylis Street.

An elderly man stepped out of the Commodore before a woman behind the wheel "suddenly reversed into the parked cars" outside the Victoria Hotel, another witness said.

The white car then pulled over to a bus stop further up.

Police are controlling traffic on Morgan and Baylis streets, while paramedics treated at least one person at the scene.

Jessie Cutcliffe was parked in the street and said she was narrowly missed as the vehicles next to hers were hit in the bingle.

"I heard a yelling, thought it was just someone shouting abuse at someone else," she described to The Daily Advertiser.

"There was a car sort of spin around backward, then came towards me and then it went a bit sharper and hit the two cars next to me ... (probably) hit the accelerator instead of the brake."

Ms Cutcliffe, who said she ran straight to the driver and called emergency services, has praised the public reaction.

"She was a bit shook up but everyone was ok," she said.

"I just started dialing 000 and went to her straight away.

"The public responded really quickly, which was great to see - traffic control, getting her out of the car making sure everyone was safe and making sure everyone had no injuries."

Co-owner of With Pizzazz, Tony Carlin, said he saw a white car coming down Baylis Street towards the highway and the driver swerved to avoid the grey commodore, but collided and the white car lost its bumper bar.

"There was an elderly man almost halfway across the road," he said.

"I saw him fall but I don't know what actually hit him or what caused it."

Mr Carlin said it was under five minutes before emergency services arrived.

"Some locals tried to organise the cars to slow down," he said.