Officers had been called to a fight between gang members in Hillary St, Pine Hill, about 10pm on Friday, but found no fight and no-one willing to assist with their inquiries, Senior Sergeant Steve Aitken said.
People in nearby Allenby St later told police they heard what sounded like a gunshot just before midnight on Friday, and saw a Mitsubishi car speeding off.
The next morning police received a report of car with damage consistent with a shotgun being discharged at it from close range.
The car was parked and empty at the time it was shot.
Police believed both incidents were related and inquiries over the weekend culminated in the execution of search warrants at two neighbouring Hillary St addresses at 2pm yesterday.
Members of the Armed Offenders Squad assisted in the search warrants and several Black Power Mangu Kaha gang members and associates were spoken to.
No firearm was located.
A 30-year-old male gang member will appear in the Dunedin District Court today on a driving charge and charges of using a firearm in a threatening act and discharging a firearm.
Anyone with any information in relation to either incident is asked to contact the Dunedin CIB.
• Diabetes was claimed to be a contributing factor in a gang member's physical and verbal tirade against passing motorists yesterday morning.
Dunedin Police were called to High St shortly after 11am, following reports a man dressed in black was swearing at motorists and throwing objects at passing cars, Senior Sergeant Brian Benn said.
One car was dented in the incident before the man, who has gang connections, was arrested by police.
The man claimed his diabetes contributed to the incident.
The 31-year-old man will appear in Dunedin District Court on Wednesday on disorderly behaviour charges.