An armed police cordon around part of Morrinsville remained in place overnight, after a gunman shot at police on Sunday morning.
"A short time later, within a minute, a second police vehicle with two police officers arrived at the scene and they engaged the offender where a substantial number of rounds were exchanged between police and the offender" before those two officers also took cover.
The police said a speeding auto an officer was chasing pulled over and one of the three people inside fired shots from a military-style semi-automatic rifle.
Minutes late a police helicopter arrived.
A manhunt is on for the gunman who shot at police following a pursuit in the Waikato last night.
She said the family, including her four young children, were asleep at their home on Avenue Road when they woke to the gunfire.
A Morrinsville resident says the incident involving police and a speedy driver was "very close to home".
Craig Burmester and his wife woke to the intense gunfire in the early hours of the morning.
The officer dived for cover before calling for backup.
"Then a little bit later we saw four figures running towards our house".
The officer took cover in nearby farmland and called for back-up.
The police officers involved have no physical injuries and police will be providing them with support, he said, adding the two people being spoken to are also not injured.
He said the whole ordeal was unsettling.
"I don't know if they were running away from the gunfire, I think they were". "It's pretty scary. You could hear two different gun sounds, and quite a few shots went off".
Police say no one was injured in the gunfire, which happened on Kuranui Road, to the south of the town, around midnight Saturday.
"Our focus right now is on locating the outstanding offender and we would like to hear from anyone with information that may assist our investigation".
She and her husband ended up staying up most of the night.
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