Full details have not been revealed, but legal experts say it raises important questions about what kind of photographs can and cannot be taken in public places.
The man was arrested on August 13 after a concerned member of the public reported suspicious activity at the Raven Meadows bus station in Shrewsbury town centre at about 3pm.
Police were contacted about the woman's concerns by a security officer at the bus station and went on to arrest a man in connection with the incident on suspicion of taking indecent pictures of young girls at the site.
The man is currently on conditional bail as police continue their investigations into the incident.
The force put out a statement saying he had been arrested for taking 'prohibited' pictures of children, but did not specify details.
Richard Ewels, a spokesman for West Mercia Police, said the 38-year-old was arrested by police following the complaint about his behaviour.
"He was arrested on suspicion of taking indecent pictures of young girls," he said.
"The suspect is currently on bail while police continue their investigations."
Constable Ben Hocking, who is the investigating officer in the case, said last week that officers had been tipped off to suspicious activity at the bus station after a member of the public raised concerns with a security officer at the site.
"We became aware of this incident due to a woman pointing out a man to a security officer at the bus station," he said.
Police have been looking to trace the woman who made the report after the security officer failed to take her details to help with their inquiries into the incident.
She is described as white, about 5ft 5ins tall, in her early twenties, of medium build with long black hair which was tied up at the time. She was wearing black leggings and a white blouse and also had a small child in a buggy with her.
Anyone with information about the incident can call Shrewsbury police station on 101. Information can also be given by calling Crimestoppers on 0800 555111.
Read media law expert Cleland Thom's thoughts on the issues raised by this story in today's Shropshire Star
By Chris Burn