The payment of a large sum of cash is reported to have eased tensions in Alotau in Papua New Guinea.
The tensions resulted from a hit and run accident in which two people, a mother and her five-year-old child, were killed.
The Post Courier reported three others, including two children, were in hospital in critical condition.
Police deployed extra officers to Alotau to contain unrest following the accident.
The deputy prime minister and MP for Alotau, Charles Abel, and the Milne Bay Governor Luke Crittin paid nearly $US30,000 to the relatives of the victims to bring an end to the violent outbursts directed at police.
Earlier, local people staged a protest march against the alleged hit-and-run, with family of the victims calling for compensation for the deaths.
When gunshots were heard near the protest, police fired warning shots at the protesters, sparking scenes of chaos and rioting.