The name of the man fatally shot in his Gisborne home early yesterday has been released by police.
He was 39-year-old Douglas Witeri.
Mr Witeri died overnight at Gisborne Hospital after being admitted in a critical condition about 3am, police said.
A 42-year-old Gisborne man has been arrested and appeared in court this morning.
He was charged with assault and remanded in custody until his next appearance on Thursday, where Detective Senior Sergeant Craig Scott said "a more appropriate charge will be laid".
Detectives and forensic scientists were continuing the scene examination today at Kowhai Street house in the suburb of Elgin where the shooting happened about 2.40am yesterday.
A post mortem examination would be conducted this afternoon in Wellington to determine the cause of death, police said.
Police upgraded their investigation to a homicide inquiry following Mr Witeri's death.
Mr Scott said the alleged offender made demands when he arrived at Mr Witeri's home before the shooting.
"We believe this man is known to the two people who were at the address."
The alleged gunman was arrested "without incident" by members of the police armed offenders squad at another local address between one and two hours after the shooting.
"We're looking at the scene and we'll continue to examine that in conjunction with the ESR forensic scientists and we're hoping to speak to anybody who may have information," Mr Scott said.
A vehicle believed to be connected to the incident was also being examined, however the firearm used in the shooting had not yet been found.
Police have urged anyone with information about the firearm or the shooting to contact Gisborne police or the Crimestoppers line, anonymously, on 0800 555 111.
Police Iwi Liaison and Victim Support staff were supporting the man's family, police said.