A person who is alleged to have fatally shot two women and wounded another man at a Whangerei property was still inside the house when it caught fire late this afternoon, say police.

Photo: RNZ / Lois Williams

Police said the three people were shot at a rural address on Mt Tiger Road, at Whareora, while they were there to carry out a property inspection at about 10.50am today.

The two women were dead when police arrived.

The third person injured in the shooting is in a stable condition in Whangarei hospital.

Police negotiated with the shooter inside the house this afternoon, but tear gas was used late this afternoon and several shots were fired at police.

Police returned fire, and the house caught fire soon afterwards, and burned to the ground. The shooter was believed to still be inside.

Fire crews were at the scene, but stayed out of the burning house due to safety concerns.

Police said the shooter was known to police, and the two women who were fatally shot may have been related.

Cordons were set up at the intersection Mount Tiger Rd and Whareora Rd, and the intersection of Whangarei Heads and Owhiwa Rd, but have now been lifted and the road is open to the public.

Police said the scene of today's shooting incident was cordoned off and will be for a number of days.

Photo: RNZ / Lois Williams

Photo: RNZ / Lois Williams