Three people are dead after a shooting in a NSW country town with a major police operation underway and the alleged gunman still at large.

Police said two women and a man had been killed in the shooting on Walker Street, in Lake Cargelligo, in the state’s Central West, about 4.40pm on Thursday.

Another man has been rushed to hospital in a serious but stable condition.

It is understood the alleged gunman has an apprehended violence order (AVO) out against him and fled the scene in a council-owned vehicle.

Police are now working to locate the vehicle.

Local residents have been advised to stay indoors with the public urged to avoid the area.

A crime scene has been established and an investigation is underway.

Lake Cargelligo is a small town about three hours south-west of Dubbo.

It has a population of around 1500 people with the area best known for watersports including sailing, kayaking, waterskiing and swimming.

More to come …