Loved ones distressed after violent death of Paul Flegel at Beechworth

Police believe the late man, Paul Flegel, travelled to Barry Butler's home on Buckland Gap Road on Thursday night.

Mr Flegel, aged 60, died at the scene and Mr Butler was seriously injured by a gunshot wound to his chest.

He managed to raise the alarm with emergency services about 8.45pm.

As police entered the property, they found Mr Flegel's body next to a Kia Stinger at the front of the home.

Police did not say how he died, but several windows at the property were damaged, with one appearing to be from a bullet.

Mr Butler, who was located in a shed, was flown to hospital following the incident.

The 61-year-old was conscious when police arrived and had been able to give a version of events to a Triple-0 worker.

Homicide Squad detectives are now working to determine what occurred in the lead-up to the incident and during the altercation.

Despite the matter involving a firearm, police said no weapons had been recovered.

Both men are known to each other.

Police are not treating it as a random incident.

A home believed to be linked to the late man on Loch Street, near the town's IGA, was cordoned off by police and searched.

The Buckland Gap Road property has also been thoroughly examined, including the late man's body, the Kia, the main home and a large shed.

A white pride flag was visible in the window of the shed with a neo-Nazi symbol.

The entrance to the property has a "do not enter sign".

Officers canvassed the area and sought CCTV video from businesses on High Street and surrounds.

Detective Acting Senior Sergeant Scott Jones said there was no information to suggest anybody else was at Mr Butler's home at the time of the shooting and death.

"It's very early in the investigation," he said.

"I haven't been able to establish a motive as yet.

"But in the passage of time, we'll work through that."

A large number of police have been involved in the investigation.

The mayor of Indigo Shire says the town of Beechworth was in shock over Thursday's death.

Residents said both men largely kept to themselves.

Mr Butler had been a long term resident, with neighbours stating he was "pleasant" despite keeping a low profile.

"When I drove past and saw all the police, my heart sank," a woman who lives near the injured man said.

"He lives there on his own and keeps to himself.

"I always gave him a wave, he's always been good to us."

Mr Butler's property features a dam, large shed and two-storey home.

Multiple windows were broken at the house.

Most neighbours spoken to on Friday said they hadn't heard any gunshots on Thursday night and had only learnt of the incident in the morning.

Nearby residents said they weren't aware of any issues at property.

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Mayor Bernard Gaffney said such incidents were unheard of in Beechworth and hoped it was a one-off.

"The police and council meet on a regular basis on a local safety committee, and usually the only crime reported in Beechworth is a pot plant being taken from someone's garden," he said.

Two women, including Mr Flegel's grieving partner, were visibly distressed outside the late man's home on Loch Street on Friday.

Detective Acting Senior Sergeant Jones agreed such incidents were rare in Beechworth.

"We believe that it is an isolated incident," he said.

"It's certainly not a random incident.

"The parties were known to each other.

"Victoria Police are working as hard as they can to resolve what's occurred and bring some sense of community safety to the people of Beechworth."

The detective said police urged anybody with information or dashcam footage can call 1800 333 000.

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