Sgt Aaron Nicholson said there had been "no finger pointing".
"However, they are aware there may be some culpability because someone has died ... and the basic rule of identifying the target hasn't been applied. Someone has to live with that for the rest of their lives," he said.
Dougal Disston Standford Fyfe (23) was killed when his best friend mistook him for a deer and shot him in the head on an early-morning hunting trip on Mt Burke Station.
Sgt Nicholson released Mr Fyfe's name yesterday but not the name of the friend, a 24-year-old Wanaka man, because a dual coronial and criminal investigation has commenced.
The third member of the hunting party, a 19-year-old Wanaka man, has also not been named. No decisions had been made about charges.
Sgt Nicholson described the case as a "tragedy".
"We are still balancing the need for information with sensitivity of the families and their need to grieve and deal with the loss," he said.
Sgt Nicholson said the trio had been at the Maungawera Valley community Christmas party on Sunday night. They played soccer with friends, went eeling in Lake Wanaka and then decided to go rabbit shooting.
They had consumed alcohol but that was not a factor in the investigation, he said.
When the trio saw a wild deer in a lucerne paddock they separated and stalked it through a stand of manuka. They were wearing dark clothing and head torches. The 24-year-old friend, who had a firearms licence, was armed with a .22 Ruger semi-automatic rifle.
"He [the 24-year-old] thought he saw the reflection of the deer's eye. He thought Dougal was standing behind him and fired. He then went over and realised he had shot his best mate.
"And in there is the tragedy, a week before Christmas. It is not a good situation for any of them," Sgt Nicholson said.
The shooting occurred about 2.30am and Mr Fyfe died at the scene. The friends went immediately to the nearest house and called emergency services.
Sgt Nicholson was at the scene within 20 minutes, spent the rest of the day on the case and spoke to witnesses and families.
Victim Support workers are also involved. There would be further interviews and a scene investigation, including forensic mapping, a possible reconstruction of the event and a search for the discharged shell.
The firearm was being sent to a police armourer in Wellington for examination.
A postmortem examination was expected to be held in Dunedin today.
Mr Fyfe grew up and was educated in Wanaka. He is the son of Wanaka lawyer Grant Fyfe and the late Ngaire Fyfe, and stepson of journalist Caroline Harker. Grant Fyfe could not be contacted yesterday.
The Upper Clutha branch of the Deer Stalkers Association has offered support to the families. Branch president Neil Cowie said, when contacted by the Otago Daily Times, the club would make pastoral care available if the families needed it.
The incident was "tragic" and highlighted how important it was to correctly identify targets.
"When you are going for a deer there's so much excitement. Often, you throw caution to the wind.
"I know I've sometimes reached a ridge and thought 'How did I get here?' The adrenalin is pumping," he said.
The "very sad and terrible" incident was a "warning to all hunters around".
"It is like that girl who was shot at Turangi last year. That's why we're doing hunting courses, focusing on safety, wearing the right gear."
He was referring to schoolteacher Rose Ives (25), who was killed by hunter Andrew Meares (25) in the Kaimanawa Forest Park in October last year.
Meares had mistaken Ms Ives for a deer while spotlighting, was convicted of manslaughter and sentenced to two and a-half years in jail and ordered to pay $10,000 reparation.
He is due to be released from prison next month, according to The New Zealand Herald.
Mountain Safety Council hunter and firearms training manager Mike Spray said yesterday spotlighting was an accepted hunting practice on private land but was illegal on public land.
"It comes with its own inherent risks, such as you can only see as far as the spotlight and you must still be able to identify targets," he said.
