A Hamilton resident who heard the shoot-out between police and a man on Wednesday night says he is "terrified" this could happen in his neighbourhood.
Police officers went to a property on O'Donoghue St in Hillcrest around 7:50pm on Wednesday seeking a person thought to be in possession of a high-powered firearm.
Waikato District Commander Supt Bruce Bird said about 10pm a man arrived at the property and fired a number of shots from his vehicle.
"He was then shot by police. First aid was administered immediately, however the man died at the scene a short time later."
Bird said during the incident, a police officer fell and sustained an injury which required medical treatment.
Assistant Commissioner Richard Chambers confirmed on Thursday afternoon the police officer is in Waikato Hospital and will being undergoing surgery.
A local resident, who wished to remain anonymous, told Newshub he heard about seven gunshots during the incident.
"Yesterday night I heard a voice but I didn't realise it was a shooting - I thought it was fireworks."
He said when he realised it was gunshots instead, he was going to call police but then realised they were already on the property.
But the man said he was shocked that this would happen in Hillcrest.
"I just feel very terrified because I've been living in the area for five years and this is the first time a gunshot has happened around my location so I feel very terrified."
Hamilton East Ward councillor Mark Bunting said he is lost for words by the shooting.
"I'm just horrified again," he told Newshub.
"Just as a community we need to work out why the heck are people finding themselves in the situation where they are shooting at cops. There's something really desperate going on, we just have to get to the bottom of it."
He said more police resources are needed and community hardship needs to be urgently addressed.
"Obviously, I'm very happy no police were injured, that would be unbearable. But the fact that someone has been shot and killed in our community is awful at the worst of times."
Supt Bird confirmed police remain at the property on Thursday morning as enquiries into the incident continue.
"Our staff come to work every day to keep our communities safe and the decision to use a firearm is never done lightly.
"Our sympathies are with the man's family at this difficult time. They will be provided support, as will the officers involved."
It comes just days after a police officer was shot during a routine traffic stop in Hamilton's Chartwell.