There were no details police could provide yesterday regarding the relationship between the victim and offenders, or what led to the shooting.
The man, understood to have been a long-time resident of the Richardson St property in Woodville, is thought to be in his 60s.
Woodville residents' Friday was interrupted about midday when police began cordoning Richardson St and surrounding roads. The man is understood to have been inside a property on the corner of the Richardson and Ferguson Streets.
It had been a frightening morning for a family who lived nearby, and whose cars were used by police to hide behind during the stakeout.
A male resident said the arrested man had lived at the property for at least 30 years. The arrested woman was younger, and he believed had some relation to the man.
"I'd only just come back home and there was a police car here. Then police all started swarming in, and my wife took off to the other end of the house.
"I heard screaming and shouting from inside their house, police were asking the old fella to come out," his wife said. "It was so close, just across the road from our front yard. It was really scary."
Another Richardson St resident said although the presence of police had been worrying, it was not an unusual sight.
"We do see a lot of police up this way. We've got three or four houses here which are a bit dodgy."
Police had used a megaphone to try to speak with the man, before letting a police dog inside the property. While staking out the property, police had widened the cordon due to concern the man might "escape the house" and run to another nearby property, a witness at the scene said.
As of last night, the shot man was in a stable condition at Palmerston North Hospital.
A Hunter St resident said although the shooting was unusual, they were "not surprised" it had involved that house, located at the end of the cul-de-sac.
"It's not nice when it gets close to home, it makes you think twice about your street and the safety of it."
The residence is located on the same street as Dannevirke South School, which is back in session on Monday.
Deputy principal Caroline Gyde said: "it's a very good thing there weren't any kids around."