The setting is beautiful, but the mood remains tense in the small B.C. Kootenay community of Slocan after a heavily armed man allegedly shot at police Thursday then fled into the woods.

Peter de Groot, 45, is still at large, but the lockdown involving about 300 residents in the community an hour north of Nelson has been largely lifted, except for the area around de Groot's home.

However, police are still encouraging residents to remain indoors.

They're combing backyards, watching streets and restricting highway access while a helicopter flies overhead.

Police say that when they investigated a dispute between two people, a man, armed with a rifle, shot at police. He then fled into the woods when police returned fire.

CBC reports that things are slowly getting back to normal 0:37

"I heard a pop, pop, pop," said Patty Burge who was watching TV two doors down.

"I got up to look out the window and there was a lot of RCMP on the street. I opened the door and the officer told me to get back into the house."

Patty and her husband Jim have lived two doors away on the same street as de Groot for about a year.

De Groot a loner

They say he has been living in his van for the past year on the lot that has a small barn on it. His animals include cows, pigs and 25 chickens.

"We had no trouble with him. He was soft-spoken and quiet," said Patty.

Some areas remain under restricted access, but the lockdown that was in effect for the entire town Friday has been largely lifted. (Kirk Williams/CBC)

"He loves his animals more than life itself. He was being evicted by the owner's son-in-law and this is what started the altercation," she added.

She said de Groot had fallen on hard times over the past year and was having problems feeding his animals.

"We never had any problem with him. He just wanted to live in peace by himself and with his animals. They're his whole family," she said.

As an RCMP helicopter flew over Jim Burge said police will have a difficult time finding de Groot and an even harder time getting him to give up.

"I think he would be a difficult man to find," he said. "I don't think he would surrender."

The police presence was still heavy on Saturday. RCMP officers guard the entrances to the town, asking people leaving to pop their trunks on the off chance that the missing suspect was hiding inside.

Tough area to search

At the RCMP command post, located in the Village of Slocan office, a number of officers wearing camouflage were preparing for another day of searching the woods surrounding the community.

The officer in charge said most residents will be allowed in—except for those living near where the incident took place.

Police say it's a tough area to search: vast, remote and rugged. (Kirk Williams/CBC)

"It's kind of a low key kind of thing. We still have checkpoints in place to check people coming in and out but people are going to be allowed to come into their homes as of today," said Staff Sgt. Don Smawley.

"There is limited access. We are urging the public to be cautious and limit their outdoor activities if they can."

Smawley said the search will continue using officers, helicopters and search dogs.

But he acknowledges it's a tough area to search.

"It's a very vast area. It's remote. It's rugged. Lots of places for an individual to hide if they want to.

Neighbours say the B.C. SPCA says inspectors had visited the property before, sometimes with RCMP present

A lone RCMP cruiser drives down an empty street. During the lockdown on Friday, the streets were virtually deserted. (CBC)

​Police said de Groot is considered to be armed and dangerous and they are asking the public not to approach him, but to call 911. They have searched de Groot's home and seized a number of firearms. Some residents say he mentioned having a military background.

Extra resources have been brought into the small village to assist in the manhunt, including air support, the Southeast District Emergency Response Team, a crisis negotiator, police dogs and a tactical armoured vehicle.