UPDATED 5.20pm Two women had gone to a home to carry out a property inspection when they were shot and killed near Whangarei, police have revealed.
Police are addressing media after the women - who were possibly related - were shot at a rural Northland address.
A man was also shot.
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The alleged shooter was known to police. Tear gas was used and shots were fired between the alleged offender and police.
They believe the man is still at the house but it is unclear if he is alive.
Police said the incident was not gang related.
About 11am, police and the Armed Offenders Squad were called and cordoned off the area, on Mt Tiger Rd about 10km from Whangarei.
Two people were feared dead and a man was in a stable condition in Whangarei Hospital with moderate injuries.
This afternoon, the house was on fire. Witnesses described seeing big plumes of black smoke.
Rosvall Sawmill owner Mark Hansen said he could see "lots of black smoke" about 2km away on Mount Tiger Road behind trees.
Fire Northern Communications Shift Manager Jaron Phillips said they had four fire crews including a water tanker and a command unit at the property.
Initial crews have been at the scene since 12.30 but the water tanker was called around
"We're assisting police and responding to a staging area."
Police were due to have a media conference about the incident at 4.30pm, but have delayed it half an hour.
Police and the Armed Offenders Squad were called about 11am and cordoned off the area, about 10km from Whangarei. They believe the offender is still within the cordon.
Detective Inspector Dene Begbie confirmed police believed two people were dead in the incident.
Police officers and armed offenders squad members remained in the area.
"If you are already in the cordoned area please remain in your house," Begbie said in a video statement posted on Facebook.
"If you see any activity on your property please call through to police on 111. I just want to thank the community for your patience.
"I assure you that as soon as we are able to we'll shut those cordons down and keep you informed of the progress of the investigation."
The Eagle helicopter has been deployed and the police negotiation team is at the scene.
Police are advising people at properties in the cordon to stay inside.
Emergency services at the scene of a shooting on Mt Tiger Rd, near Whangarei. A bullet hole can be seen in the windscreen of a car. Photo / Northern Advocate
It is understood multiple shots were fired at a property on Mt Tiger Rd, near the intersection with Whareora Rd.
After a cordon was set up, a man in a red Suzuki with a bullet hole through the windscreen drove towards it. He got out and was taken by police to the back of a waiting ambulance.
Emergency services at the scene. Photo / Northern Advocate