Across the road a number of patched gang members were gathered on the front lawn of a house.
Sergeant Denis Foster of the Whakatane police later said members of the public reported shots being fired and a patched gang member being seen with a firearm at a house in Te Teko.
The Tauranga AOS secured the area and searched a property. No firearms were found.
Mr Foster said Te Teko police were making further inquiries but so far no arrests had been made.
A Te Teko resident, who did not want to be named, told The Daily Post the shooting had taken place in Huia Cres in Te Teko.
He said a car had driven into Huia Cres and had shot at a known gang member's home while children were playing nearby. As the car left a retaliatory shot had been fired.
A post on Facebook suggested the shot had hit the car. It asked how the f*****s liked their car and said shotguns make big holes.
The same person on Facebook said shots had been fired in the same area a week before, but in the middle of the night.