Police communications manager Kim Perks confirmed a call had been received about a person holding a firearm and a shot fired near Opotiki College, although police could not find any evidence of this.
She could also not confirm if the incidents were gang-related. Mrs Perks said although two factions were involved in Sunday night's incident, it was not known what had caused the initial dispute.
"Just because there are gang affiliations with people involved, it was not necessarily a gang dispute. We are working to find out what sparked the incident."
Eastern Bay of Plenty police area commander Inspector Kevin Taylor said the community were asked to remain calm and to co-operate with the investigation into the death of the man.
"We fully appreciate that this is an emotive time for the community of Opotiki and it is clear Sunday night's incident has caused some tensions in the town.
"It is really important that we are able to focus our efforts on supporting the family of the young man who died and identifying the person responsible for his death, rather than having resources redirected to deal with growing tensions.
"The best way people can assist the man's family is by co-operating with the investigation and passing on any information that might assist us as soon as possible."
He said the community could be assured police were taking the death seriously and had a large team working on the investigation. A Goring st resident, who did not wish to be named, told the Rotorua Daily Post people involved in Sunday night's assault were members of opposing gangs who lived side-by-side.
"From what I understand, there was a bit of a run-of-the-mill fight between people living in the two homes. They both called for back up and, in the fight that eventuated, a weapon was produced with deadly results."
The man said most people in the street would have heard the commotion.
"For years we've had red living beside blue, living beside yellow," the man said. "And that's because nearly everyone is related."
Police have increased patrols in Opotiki to provide additional visibility and public reassurance.
Forensic examinations are continuing and police are awaiting the outcome of a post mortem.
Anyone with information is asked to contact Whakatane police on (07) 308 5255. Information can also be provided anonymously to the organisation Crimestoppers on 0800 555 111.