Backup police have been brought in from Mudgee, Tamworth, Dubbo and Orange in case tensions boil over.

Dennis 'DJ' Doolan, 32, sustained a single gunshot wound to his left buttock following a confrontation in Jindalee Circuit at 12.10pm.

He allegedly threatened police and residents with weapons for more than 40 minutes. He has not yet been charged with any crime.

Fairfax Media has been told police had been searching for Mr Doolan on Wednesday after he had allegedly committed property offences in the area and had been chased from several premises.

He allegedly armed himself with various weapons, including a screw driver and a broken plate, during a string of confrontations with police.

He was chased through backyards and neighbouring streets and residents reported being told to lock their windows and doors. It's understood he was running away from police and also swung a wooden pole or baseball bat at an officer.

"They shot him in the buttocks," one witness said. "He's pretty bad. He was running away from them but somebody said before that he had a baseball bat."

The shooting followed another related incident in the area on Wednesday morning which allegedly involved an altercation between two women and a break and enter.

The dispute escalated further and police were called, which led to the police seeking Mr Doolan.

Mr Doolan's family, who had been at a funeral nearby, arrived on the scene after the single shot was fired and began to confront police. Extra police arrived shortly afterward to control the crowd that had gathered.

Mr Doolan was flown to Orange Hospital on Wednesday afternoon in a serious but stable condition.

A Critical Incident Team will investigate circumstances surrounding the incident, including the discharge of a police firearm. That investigation will be subject to independent review.