Julian Ingram, also known as Pierpoint, a 37-year-old man, was named by police on Friday morning as the suspected murderer, issuing a warrant for his arrest.
Locals in Lake Cargelligo, about 550 kilometres west of Sydney, have been told to stay indoors and report any suspicious activity after the attack on Thursday afternoon.
A 32-year-old man and a 25-year-old woman were killed when bullets were fired into their vehicle about 4.20pm on Bokhara Street, Lake Cargelligo.
A short time later, a 50-year-old woman was shot dead at nearby Walker Street, with a 19-year-old man also shot and taken to hospital in a serious but stable condition.
The three people were killed in the space of about half an hour.
"There are concerns that this offender may be armed with a firearm ... the offender is currently on the move, and we are looking to try and locate this offender," western region police commander Andy Holland said on Thursday afternoon.
Police have advised Mr Ingram was "last seen driving a Ford Ranger utility with NSW registration DM-07-GZ described as having council signage, a metal tray back, high visibility markings on the side and an emergency light bar on the roof."
"Anyone who sees Julian is urged not to approach and contact Triple Zero (000) immediately."
Extra personnel have been brought in from surrounding areas to help with the search, including tactical operations police, search co-ordinators and air crews.
"The scene faced by the emergency services officers at that time would have been horrendous," Mr Holland said.
A staff member at the Commercial Hotel in the centre of town, who did not wish to be named, said there had been a lot of police activity after what they believed was a shooting in a house.
"I'm just inside, trying to not be around," they told AAP.
A manager of a local motel said it was "a little bit scary" in the town and she believed more police were headed to the area.
Roy Butler, the independent member for Barwon, described the situation as "tragic news".
"It's a terrible situation, and it's still live, so we don't have much information. My thoughts are with the victims and their families," he said.
"As there has been a number of shootings and the offender has not been detained - please stay indoors until the advice changes."
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