Residents of Ruatoria in the Gisborne district are being assured that a firearms incident this morning was an isolated event.
It led to a street going into lockdown and police patrolling the area.
Police were told that shots had been fired on McClutchie Road in Ruatoria, north of Gisborne, about 9.20am and advised residents to stay inside.
Vehicles had collided and the parties involved knew each other, they said.
No injuries were reported.
The road has since been reopened and the police said they are following strong lines of enquiry as they hunt for those involved.
They will not confirm reports that gangs were involved and said they had no information to suggest that there was a near-miss involving a pedestrian.
Residents are being told to expect a continued police presence in the area throughout the weekend.