Residents of Fyfe Rd in Waihi Beach say they heard the muted sounds of a BB gun or air rifle and "blood-curdling" screams from a woman about 1.40 yesterday morning.
But they thought it was a domestic dispute and went back to sleep.
Hours later they woke to find a homicide investigation had been launched in their street.
Police cordons had been set up and a large blue tarpaulin covered the body of a man in his 30s, believed to be from Hamilton. Police said he had been hit by a paintball pellet.
For most of the day the dead man lay under cover on the left-hand side of the road while detectives and scientists scoured the area for evidence.
More than 20 numbered yellow police markers over a distance of 100m were used to map out items of interest on the street.
The Herald understands most of the markers were used to identify paint splotches, which Senior Sergeant Rex Knight of Thames said were consistent with a paintball gun that was part of their inquiries.
"That [gun] we believe was involved in the altercation but we don't think it was a causal link. It's all part of the mix. Basically we know that there was a fight - enough was going on for the police to be called. Clearly a paintball gun was involved."
The dead man had been hit by a paintball pellet, Mr Knight said.
The body had an injury to the back of the head, although it did not appear serious.
It was consistent with the skull striking the ground, and no weapon was being sought in relation to any blow to the head.
Shortly after police arrived in Fyfe Rd a number of people were seen standing around. It is believed two men were involved in a "pushing and shoving" exchange.
Mr Knight said there had been no parties in the street on Saturday night, but a Mardi Gras had taken place in town earlier in the evening.
Nobody had been arrested and it was unlikely that any charges would be laid until the results of a post-mortem examination were known. Mr Knight said this would take place in Auckland today.
It is understood a taxi driver saw the incident, but nobody at Waihi Taxis could be reached yesterday.
Danae Bernard and her partner, Darren Taylor, who live three doors away from where the drama unfolded, said they woke to hear the muffled sounds of a gun being fired in quick succession.
"I woke up about 1.30am and heard some arguing," Mr Taylor said. "I heard what I thought were four to five short little rounds being fired. It wasn't loud. It sounded like a BB gun."
Ms Bernard said: "I didn't think it would be as serious as this. I heard someone yell, 'Get off this property, I rent this property', then I heard, 'It's just like you to take it too far'."
There was a lot of screaming and swearing, she said.
"It's pretty scary. You get parties around here but not anything violent. Usually it's just people enjoying themselves. I was a little frightened when I first woke, but I'm not too worried now. I'm not going to move out of the area."
Another neighbour, Pam Moore, said she heard a woman's "blood-curdling" screams and a man's deep voice. She went back to sleep because hearing raised voices on the street on a Saturday night was not unusual.
Paintball gun involved in fatal attack
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