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A man in his 40s has died after being stabbed in Pāpāmoa, near Tauranga, this morning.
Police have arrested a local man aged in his 20s in relation to the family harm incident and the scene investigation is still under way.
The area will be cordoned off for some time while inquiries are ongoing.
Police said in a statement that emergency services were still working to establish the exact nature of the incident, which happened about 8.30am.
Residents reported police had blocked off an extension at the end of Harding Drive.
Neighbour Todd Madden understood the incident was a stabbing.
He said he and his 6-year-old were walking to their car on the front lawn, headed for swimming lessons, when they saw a "young guy covered in blood" in a driveway.
"[He] yelled at me to call the police."
"Police arrived and he laid down on the ground and I grabbed the two kids."
The children told him there was a victim inside "laying in a pool of blood".
"They had been crying loudly for about 30 minutes but I just thought they were being naughty - I wished I had of gone over earlier."
Madden said the family was new to the area.
"It's a lovely street we live on, the family has been here about three weeks, the kids play with our son and are very polite and friendly."
Shortly after 10am he said the road was still cordoned off and emergency services remained at the scene.
Meanwhile, there have been no further developments or arrests in the police investigation into a home invasion in Pāpāmoa yesterday.
Two people were injured when a pair of masked men entered the Waterford Park Drive home about 4.30am armed with an axe and a crowbar.
Detective Sergeant Darryl Brazier emphasised this morning that police had established the two male offenders were specifically targeting the address.
"For that reason, there is no need for members of the public to be alarmed following this incident."