Police have descended on a Porepunkah street overnight in the hunt for alleged gunman Dezi Freeman.

At 8.30pm yesterday, at least 12 police vehicles arrived at Chandler Court in the Victorian high country town, about 300km from Melbourne.

Simultaneously, an emergency alert was sent out to everyone in the Porepunkah area, instructing residents that police were on the hunt for an armed suspect and advising they minimize travel.

Officers dismounted and surrounded a property as a loudspeaker advised people inside to come out with nothing in their hands.

About 10 people walked from the home before they were searched. Officers led away a woman and a baby.

Police would not comment on the operation and only said the investigation was ongoing.

Also overnight, an emotional vigil was held in the town of Wangaratta for one of the officers shot dead in the attack.

The town is where Detective Leading Senior Constable Neal Thompson, 59, used to work. He was only two weeks away from retirement when he died.

Freeman is accused of shooting dead Thompson and Constable Vadim De Waart on Tuesday morning at a home in Porepunkah.

A third officer was allegedly shot and wounded in the leg and is recovering in hospital.

Freeman is a self-described “sovereign citizen” who is known to police.

The Australian Federal Police describes a sovereign citizen, or SovCit, as someone who aims to “disengage from society and declines participation in societal obligations such as paying taxes.”

Police said he had several firearms on him, with senior officers confirming police had not recovered any weapons used in the attack.

Hundreds of officers, including specialist police, have converged on the small rural town as Victoria Police deploy every available resource to locate and capture Freeman.

Police are still working on the theory that the accused gunman remains in the Porepunkah area.

Deputy Commissioner of Regional Operations Russell Barrett said yesterday the search area had been expanded but Freeman was believed to be close by.

He also said the manhunt had been taking longer than expected.

The rough terrain has been making the search difficult.