A police officer was shot and killed this morning during what is understood to have been a drug bust in Chaucer Road, Napier Hill.
The officer had gone to the hill address with two other officers. It is believed a second officer was taken to hospital with a serious gunshot wound and a civilian had also been shot.
Police were also concerned as a third officer who had also gone to the scene had not been accounted for by 10.30.
They were unable to contact the officer or get to him as the gunman was still in the house.
Police had been told by a person who knew the offender that he had plenty of ammunition, and possibly bombs.
The shooting happened just after 9am with police cordoning off a large area of the hill.
Police reports indicated they were seeking a 50-year-old man who had been at the address when police arrived.
Witnesses reported hearing strings of shots possibly gunfire between police armed offenders squad officers and the offender or offenders.
One witness said he heard about six shots in quick succession.
Armed police and patrols swarmed into the area, many clearly stunned by the news they were receiving.
Gisborne Armed Offenders Officers arrived just after 10.30 to bolster local police.
One report just after 10.15 indicated that a person who knew the offender had offered to act as a mediator to get him to hand himself in.
A Kipling Ave resident said she heard a loud shot just after 9.
"I just thought it was a backfire," she said.
Carpenter Chris Alexander was working on a Carlyle St flat when he heard about "six or seven" shots about 9.30am.
A couple of minutes later he said "a few rounds went off" so he jumped on the roof to see if he could see anything.
About 15 minutes later he said another six shots were fired.
Another person said it sounded like "world war 3 going off".
A large area of the hill was closed off and Port Ahuriri School, Central School and Napier Girls' High School were locked down as the hunt for the gunman was carried out.
Mayor Barbara Arnott said she was shocked.
"It's an appalling shocking incident to have here right in the heart of our city," she said.
"My thoughts and those of all Napier people will be with the local families affected by this tragedy."
* Today's tragic shooting of the officer was the second in recent memory for many officers.
Hastings police officer was shot and killed in Yarmouth Road, Flaxmere, in 1996.
Officer shot dead
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