Residents have spoken of their horror as police investigate the death of a man and woman following a shooting at a Wangaratta house.
Two adults and six children - who were all uninjured - left the property shortly after neighbours heard shots fired just before 1pm on Tuesday.
Police later reported a man was holed up in a house with a woman following reports that a high-powered rifle had been fired inside a home.
About 1pm Tuesday afternoon, police shut down residential streets in the north-east Victorian town and were attempting to make contact with the man.
Police entered the property about 5pm and found a man and woman dead inside.
Residents of neighbouring properties were asked to remain inside as special operations group officers armed with machine guns inspected properties backing onto the Belle Avenue house.
Wangaratta resident Bruno Meneguzzi, who bunkered down in his home for hours, said the neighbourhood had been left reeling.
"You wouldn't believe it," he said.
"You see them every day.
"Every day, she was coming (past) with the pram.
"She was a lovely lady.
"They were very nice people."
Mr Meneguzzi said the couple had been living at the home for some time and he had never witnessed them arguing.
The deceased couple's children are believed to be staying with family members in the wake of the Anzac Day tragedy.
It is believed they had four primary school aged children.
Victoria Police Superintendent Paul O'Halloran said a witness reported seeing a man with a rifle and telescopic lens chasing a woman.
The pair, who were believed to be husband and wife, ran into the house next door.
Superintendent O'Halloran said a report would be prepared for the coroner.
"It's a tragic incident," he said.
It is believed the couple's four young children also ran into the house next door but they managed to flee to safety with two other young children and two adults already inside the neighbouring property.
Homicide squad detectives were at the scene until late Tuesday evening and will assist local police with the investigation.
Witnesses told the Border Mail they assumed the gunshot sounds were children playing with crackers on Anzac Day, until they saw police cars rush to the area.
They blocked off area was next to the Appin Park athletics track, frequently used by young children, with dozens of officers on scene.
Specialist negotiators were brought in the hope the matter would resolve peacefully.
Police are not searching for anyone else in relation to the incident.
For help or information call Lifeline on 131 114 or SuicideLine on 1300 651 251.