Defence lawyer Mike Antunovic told the jury at the beginning of the trial that Mr Hansen showed up to Swain's property already fatally wounded and died while there. He said Swain stored the body on his property before disposing of it.
The Crown case is that Swain shot Mr Hansen about five times during an argument, then stored his body for 11 days before sealing it in a 44-gallon drum and dumping it in the Whanganui River.
Mr Hansen was never seen again after November 24, 2013, when he was spotted heading towards Swain's property.
A tenant on Swain's property at the time, Natassia McDonald, also gave evidence yesterday.
Several phone call recordings were played where she filled Swain in on police activity on his property while he was in Manawatu Prison and spoke about how police didn't understand her "loyalty" to Swain.
Ms McDonald said she filmed police when they were on the property and was told she was obstructing them.
She told defence lawyer Steve Winter that she saw police carrying bags on to the property and they told her to go back inside, or risk being arrested for obstruction.
A detective constable with the Wanganui CIB also gave evidence, describing the police search of the Whanganui River last June.
Detective Constable Craig Jackson said police and navy divers combed the river with sonar equipment "in strips, as if you were mowing the lawn".
The footage would be watched and police would dive wherever an item roughly the size of a 44-gallon drum was spotted.
Items found included tyres, tree stumps and concrete blocks, Mr Jackson said.
The search stretched from Pipiriki up the River Rd, to the river mouth at Wanganui.
The trial, before Justice Brendan Brown, may continue into next week.