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The police shooting in Napier has caused chaos for many residents.
People within the police cordon were ordered to stay in their houses, which is where many remained several hours after the incident began.
Police put the normally quiet suburb of Hospital Hill in lockdown as the armed stand-off unfolded.
Resident Sheila McKay heard the shots and called police.
"I heard a lot of gunshots, it was terrifying, I was in the house on my own and I thought if this person wants to escape they will come to my house cause there is a lot of greenery around the place," says McKay.
As the stand off continued police moved in and moved locals out.
By midday a cordon was set up, extending right across one end of Hospital Hill and affecting thousands of houses.
Malcolm Holly lives on the edge of the cordoned zone and says there were police cars everywhere and helicopters flying overhead.
Some of the action was a little too close for comfort.
"A couple of shots sounded fairly close this morning and we shot inside," Holly said.
Other residents were stuck deep inside the cordon, ordered by police to stay inside and out of sight. ONE News could only reach them by phone. They told reporters they could hear negotiators trying to talk the offender out of the house but said "he's not budging".
Some youngsters from nearby Central School were allowed to leave after being walked down the hill to a pickup point away from the house.
Police are reassuring residents that they have the situation under control and Napier Civil Defence have set up services for those unable to return home on Thursday night.
All evacuees who registered at the Napier Civil Defence Welfare
Centre, have been put up in local hotels and motels says Public
information manager Monique Hewitt.
As at 9.45pm on Thursday, 126 people had registered at the Napier
Civil Defence Welfare Centre set up at Napier Intermediate
School.
Seventy-seven people have been put up in local motels and hotels,
while others have merely registered and subsequently gone to stay
with friends and family in other areas of Napier.
Napier Mayor Barbara Arnott says the city is rallying together as a result of the tragedy
Click here for the full list of New Zealand police officers killed in the line of duty.
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