A Papatoetoe resident says he heard police yelling at a gunman to put his weapon down moments before two shots rang out and he dropped to the ground.
The gunman, who police say had earlier shot at a neighbour's house, was critically injured and taken to hospital fighting for his life.
Counties Manukau District Commander Superintendent Jill Rogers said police were called to an Avis Avenue property at 5.47pm on Thursday after a shot was fired through the window of a neighbouring house. No one was injured in the incident.
Police, including members of the Armed Offenders Squad and the Eagle helicopter, responded and cordons were put in place.
Nearly two and a-half hours later, Rogers said a man emerged from a house with a gun and was shot by police.
A local resident told the Herald he heard shots being fired.
"I went outside and police (were) yelling 'put the gun down' and then two shots."
Rogers said the man was taken to hospital in a critical condition.
Another resident who lives in a nearby street told the Herald he heard lots of sirens and saw police cars arriving in groups of two and three just before 6pm.
The initial cars were followed by a marked police van, more police and then the AOS van and dog units, he said.
"At 7.30 the first ambulance arrived [at the cordon] and around 8.30 we heard two or three shots and the ambulance went into the street straight away.
"It was scary because it was getting dark. As soon as the shots happened the helicopter came in really close and was flying low around the house."
A large number of residents were kept outside the cordon, unable to access their homes throughout the armed incident.
The man said one was a young mother worried about her children, who were being cared for by their grandmother in the street.
Rogers said a cordon will remain in place overnight and a scene examination will begin on Friday.
A Critical Incident Investigation into the shooting is under way and the IPCA will be notified.
Otara-Papatoetoe Local Board Chair Lotu Fuli told Newstalk ZB the shooting was the last thing the community needed right now, especially with the latest covid-19 outbreak.
"It's very scary, but unfortunately these things have been happening more frequently over the past couple of years."
"It's disappointing but we really feel for our community".