Emergency services were called to Factory St in Granville just before 4.30pm on Sunday following reports of a shooting.
The man, aged in his 40s, was found sitting in the gutter with a gunshot wound to his left shoulder.
Paramedics treated him but he died at the scene.
The man is yet to be formally identified.
Superintendent Andrew Holland said the attack appeared to be targeted.
"It would appear that two groups of Asian males have met at that location, that shot has been fired at some point and the male is now deceased," he said on Monday.
"We don't know the links to organised crime but ... the meeting between two groups would suggest it's a targeted attack, which would suggest there could be links to organised crime."
The victim is known to police, Supt Holland said.
Detectives located two firearms near the scene and investigations are under way.
Two men are in custody assisting with police enquiries.
"We're having some problems with translation ... that's probably our biggest issue at the moment just making sure they understand what they're talking to police about," Supt Holland said.
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