Police have begun a "comprehensive" investigation into Friday's shooting in Purakaunui as a 34-year-old woman appeared in court in connection with the incident.
Dunedin Hospital said a 51-year-old man being treated with a gunshot wound was in a stable condition. He was moved from intensive care to a general ward yesterday.
The woman appeared in Dunedin District Court yesterday morning, dressed in a blue jump suit.
She was charged with assault and driving with a breath alcohol level almost four times the legal limit.
She was remanded in custody at Dunedin central police station to reappear in court on Tuesday.
She was given interim name suppression because of the risk that, due to the smallness of Purakaunui, the victim would be identified if her name was released.
Southern District Command Centre Acting Senior Sergeant Jared Kirk said charges against the woman would be reviewed before her next court appearance and it was "highly likely" more serious charges would be laid.
The "real work" had begun this weekend on what was going to be a "comprehensive" investigation into Friday's events, he said.
The investigation involved examining the scene along with Environmental Science and Research scientists, and speaking to several witnesses, he said.
Purakaunui residents feared the worst when armed police, including members of the armed offenders squad, swarmed into the seaside community north of Dunedin shortly after the incident unfolded in Bay Rd at 4.25pm on Friday.
Police quickly surrounded the street with armed officers, who stopped neighbours getting to their homes while grim-faced AOS members made their way towards the house.
Soon afterwards the Otago Regional Rescue Helicopter swooped down to land in the settlement and collect the injured man.
Acting Senior Sergeant Ian Temple said the 51-year-old man with a gunshot wound was taken from the address and flown to Dunedin Hospital.
More than half-an-hour later, about 5pm, the 34-year-old woman presented herself to police at the Dunedin Central police station, where she was "assisting police with their inquiries," Mr Temple said.
Another woman, who appeared shaken, was also seen being taken from the scene of the shooting to a police car before being driven away.
Police later recovered a firearm and were not seeking anyone else in relation to the incident, Mr Temple said.
Neighbours arriving home told the Otago Daily Times they were shocked to find armed police and media filling their normally quiet street.
Murray Harwood said he had owned a home in Purakaunui for 40 years, and had lived there for the past 10 years, but had never encountered such a scene before.
He knew something was wrong as he drove back to his home late in the afternoon.
"I started getting police cars passing me on the road and I figured something was going on.
"After living through Aramoana, you start wondering what's up the road," he said, referring to the 1990 massacre of 13 people in the nearby seaside town.
Another neighbour, Heather LaDell, who lived near the location of the shooting, said the settlement was normally "lovely - quiet".
"My son and I go out for walks every night, often after dark, and never feel unsafe."
She arrived home to be confronted by a line of police patrol cars and ambulances.
"Then the guns came out and I said 'I'm going to be leaving now'."
She knew the owners of the house where the shooting occurred, but said they were away, and believed tenants or house-sitters may have been staying at the property.
Another Purakaunui resident, who did not want to be named, said she locked her door after she was warned by a friend just before 5pm "that there is someone walking around with a gun out here".