For years, friends and family of Rodney Tahu, shot dead in Turangi in 1979, lived in the knowledge that his alleged killer lived in a town nearby.
On Friday, a 70-year-old man was arrested at a Rotorua house. He appeared in the Rotorua District Court on Monday, where he was granted interim name suppression.
Mr Tahu's former friend Anton Bryant said it was common knowledge the alleged killer lived in Taupo, where he worked for some time as a real estate agent, before moving to Rotorua in the mid 1980s.
"Rod's family were aware of the guy in Taupo but again it's one of those scenarios just knowing that justice hadn't been done and as time goes by things just kind of blow over.
"I'm actually very surprised, especially from the family knowing that someone hadn't dealt to him ... there would be the odd conversation that there hadn't been retaliation."