Detective Sergeant Chris Henderson said people should not approach Hill should call police.
Eight of the 10 people arrested will appear in Dunedin District Court tomorrow. Two people have been released after initially being arrested.
Those arrested were charged with unlawful assembly and more charges were likely, Inspector Alastair Dickie said.
Five of the arrested men were Black Power gang members and the remainder were linked to the Mongrel Mob, he said.
The men were being held in custody to ensure there was no further "escalation around the city''.
"We needed to act quickly to keep the peace and limit any damage or threat to the safety of the public,'' he said.
A senior Black Power member, 44, underwent surgery at Dunedin Hospital last night to repair nerve damage to his right arm after being shot.
Extra staff were called in to investigate, with searches of properties and vehicles at the centre of the inquiry to take place today, Mr Dickie said.
Police were uncertain what sparked yesterday's violent confrontation.
It has been two years since gang violence last erupted in the city, with police then arresting more than a dozen gang members for a range of offences.
The most serious of those included a drive-by shooting at a south Dunedin house, the arson of another house and the throwing of Molotov cocktails at several other properties.
