Residents in Tees St said there remained a heavy police presence with about seven police officers and three cars outside a house on Saturday afternoon, between the intersection of Wansbeck and Arun Sts.
The Otago Daily Times understands an occupant of the house was shot in his leg on Friday night or early Saturday.
A nearby business owner confirmed officers were investigating a gunshot and detectives had requested CCTV footage.
The shooting was concerning, as accommodation businesses in the street were just getting back on their feet following disruption from Covid-19, the business owner said.
Police said inquiries to determine the circumstances of the incident were ongoing.
Over a month ago, there had been another callout to the street, involving armed police.
The ODT was also aware of a person who had their car broken into in the vicinity recently.
The business owner said there should be more public security cameras in the streets to help keep people safe and aid police investigations.
A St John spokeswoman said St John was called to Tees St, South Hill, Oamaru, about 1.25am on Saturday.
A helicopter and an ambulance attended and airlifted one patient to Dunedin Hospital with serious injuries.