Residents in Tees St said there remained a heavy presence outside a house in the street in the afternoon, between the intersection with Wansbeck St and Arun St, with about seven police officers and three cars.
The Otago Daily Times understands an occupant of the house was shot in his leg.
A nearby business owner confirmed officers were investigating a gunshot and detectives had requested CCTV footage.
Over a month ago, there had been another callout to the street involving armed police.
She was also aware of a person who had their car broken into in the vicinity recently.
There should be more public security cameras in the streets to help keep people safe and assist with police investigations, she believed.
A helicopter and an ambulance attended. One patient was flown to Dunedin Hospital with serious injuries, the spokeswoman said.
Police have been approached for comment.