Tauranga residents have described hearing loud screams and a baby crying after a gunshot rang out as they were eating their dinner about 6.30pm.
Police are currently at a house on Christopher St, in the city's south, where it appears a woman has been shot.
A group of people who live nearby told the Bay of Plenty Times they heard a loud noise that sounded like a gunshot.
"It definitely wasn't a car back-firing," one witness said.
"After the shot, I heard a baby crying, and lots of people yelling and screaming, including a woman who I heard say 'look what you have done'," another person, a man, said.
The residents said they next thing they heard was a car driving off at speed and shortly after sirens as the police arrived.
Another man in the street said there had been an altercation at the property and a woman had been injured, but he declined to comment further.
Police said a woman was believed to have suffered a gunshot wound. She was taken to hospital but police could not confirm how badly she had been hurt.
A reporter at the scene said an armed officer was standing guard at the front entrance to the property, but the street was not cordoned off.
About three police cars were parked at the intersection of Twelfth Ave and other patrols cars were dotted around nearby.
Some people could be seen inside the property speaking to police.
Police are making inquiries into what happened.