A GUNMAN is on the loose and an Anna Bay woman is undergoing emergency surgery in John Hunter Hospital after a shooting early this morning.
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The woman, 31, was shot in the stomach and the leg about 4am this morning.
Police were called to a house in Pacific Street, Anna Bay when neighbours heard shots fired.
Witnesses have reported seeing two people in the area at the time of the incident.
The woman was treated at the scene by NSW Ambulance paramedics and taken to John Hunter Hospital.
She is undergoing surgery and her condition is unknown.
Police are at the scene this morning conducting investigations and have urged anyone with information to come forward.
People should also exercise caution, as it is unclear whether the offender is still armed.