Cordons have been set up around 15 square kilometres of farmland as a police helicopter and armed police search for a gunman.
A body was found in a car near Norsewood, in southern Hawkes Bay, after the gunman fled a breath test and led police on a chase yesterday before crashing his car.
The gunman ran off before shooting and wounding a farmer and then shooting at police.
He has been on the run over night, despite rain and temperatures as low as 3 degrees.
Police have said they are searching for 46 year-old David John Bourke from Wanganui. They have said they want to question him in relation to the shooting.
Bourke is described as being of European descent, 170cms tall, stocky build and with short greying hair.
Police spokeswoman Kim Perks said police had concerns for public safety after the gunman shot at the farmer and police officer, both of whom were backing away from him at the time.
Asked if police were confident the gunman was inside the cordons, Ms Perks said police were "optimistic".
She said the cordons were put up quickly after the gunman left his car.
"We're not putting the community into lock-down but there were some people evacuated last night and some decided not to go," Ms Perks said.
Ms Perks said police are checking out-buildings on farms and warning farmers to be vigilant as they go about their work this morning.
Sam Von Dadelszen, who owns a farm on the road, said the gunman had walked through paddocks and confronted workers in three milking sheds yesterday.
Ms Perks said the body found in the gunman's car has not been formally identified yet.
Police last night warned residents of Norsewood, 20km northeast of Dannevirke, and nearby Ormondville and Takapau to stay inside, lock their doors and stay away from windows.
- ADDITIONAL REPORTING: NZPA, NZHERALD STAFF
Armed police, helicopter, search for gunman
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