Dezi Freeman was found by police at a large rural property in the Walwa area, less than one kilometre from the Murray River.
The property is totally off grid and houses are several buildings, including shipping containers, caravans and several disused trucks and cars.
It backs onto Mount Lawson National Park and is near Kennedy’s Reserve, a popular fishing and camping spot.
Neil Sutherland, a farmer at Thologolong, near Walwa, told ABC radio he heard one of the gunshots during the stand-off, while it was still relatively dark.
“I didn’t really know what was happening, it was definitely not regular. There was a helicopter circling the area and I heard a loudspeaker and a siren, but I couldn’t hear what they were saying,” Sutherland said.