A car was sprayed with bullets, leaving a man with a gunshot wound to the leg, during a traffic dispute in Queanbeyan in the early hours of Saturday morning, police say.
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NSW Police said shots were fired at a dark blue Toyota Echo travelling along Molonglo Street about 4.15am after what they described as a traffic altercation.
One of its passengers, an 18-year-old man, was hit in the leg, but the other four people in the car escaped injury.
A short time later, officers were called to a home in Queanbeyan and seized the Toyota Echo for forensic examination.
While the injured man initially refused medical treatment, he later presented to a Canberra hospital with non-life-threatening injuries.
Police have now set up a taskforce, known as Strike Force Lotterie, to investigate.
They believe at least three shots had been fired at the car and are looking to speak to a man described as Caucasian, aged in his 30s with a solid build, who was driving a silver sedan at the time of the incident.
Detective Inspector Neil Grey said the location of the shooting in a residential area was "a real concern for police".
"There existed a real potential for members of the public to suffer significant harm from this reckless and dangerous act," he said.
Anyone with information, CCTV or dashcam footage or who saw a silver sedan or blue Toyota about 4.15am on Saturday are urged to contact Queanbeyan Police Station on 6298 0555 or Crime Stoppers on 1800 333 000.