A Lakes District Health Board spokeswoman said one man had tonight been transferred to Waikato Hospital in a critical condition. The other had earlier discharged himself from the emergency department.
Four men have been arrested and inquiries are ongoing, police said.
Bay of Plenty Police district communications manager Kim Perks said it was too early to say whether the incident was gang-related. She was also unable to comment further on the nature of the men's injuries.
Police said they would be maintaining a presence in the area and there were no immediate concerns for public safety.
A number of people have come forward and provided information for which police are grateful.
Anyone with information who hasn't yet spoken to police are asked to call the Rotorua Police Station on 07 348 0099.
If anyone sees anything suspicious or anything that they feel requires an immediate response they should call 111.
UPDATE:
Two people have been taken to Rotorua Hospital with unknown injuries after an incident in Western Heights.
The incident unfolded just before 3pm when police were called after gun shots were heard.
The nearby Western Heights Primary School was closed for the year.
Armed police were seen guarding two properties, one on Turner Dr and one on Leslie Ave.
According to Bay of Plenty Police Facebook page there had been a serious incident in Turner Dr, Rotorua involving firearms.
"There is a large police response and presence in the area and inquiries are continuing as to what has occurred and who is involved.
The police can confirm that there is no further danger to the community and the public can go about their business as usual.
"If you do have any information that may assist the Police with this incident we wish to hear from you," the statement said.
EARLIER:
Armed police are still swarming the streets in Western Heights.
A Rotorua Daily Post reporter at the scene said he believed one man had been taken to Rotorua Hospital.
Police have confirmed two adults have been injured in the incident.
In a statement police have said they are waiting for updates on their conditions, but the injuries were not believed to be life-threatening.
EARLIER:
There has been an incident on Turner Dr, near Western Heights Primary School.
A reporter at the scene said there were at least three police cars and several armed police officers in the area.
He said there were also police officers stationed at the end of an alley way on Leslie Ave.
An ambulance north communications spokeswoman confirmed they were attending an incident in the area but would give no further details.
More to come.