Following the search a man was arrested and charged with unlawful possession of a firearm but the arrest did not directly relate to the shooting, police said.
About 2pm two more homes were searched - one on Sewell St and another on Galway St, which backs on to it.
One neighbour said she had been mowing the lawns moments before armed police stormed into the area. "They came in fast, parked up the driveway, on the kerb and on the street," the woman said. "Then they asked the occupants to come out, over a loudspeaker."
She said police asked numerous times before they shot smoke canisters into the home and barged in single-file behind riot shields, through the front and back doors. "They didn't take anyone away, I don't think anyone was at home."
Both homes underwent forensic examination.
Meanwhile, at the scene of the shooting on River Rd, forensic staff dressed in blue suits and booties combed the front lawn.
The examination carried on around an SLH Labour Hire truck that had been parked on the front lawn for the day. SLH Contracting is a labour provider and industrial/commercial painting contractor. It is understood the two injured men worked for the company. The Rotorua Daily Post contacted SLH Contracting but they did not want to comment.
Last night three Kawerau men were assisting police with their inquiries. Mr Standen said the Kawerau community would hold vital information. Anyone with any information is asked to contact Kawerau Police on (07) 308 5255 or anonymously through Crimestoppers on 0800 555111.