"We actually heard they used loudspeakers from the RCMP around town saying, 'Peter come out,'" said CBC reporter Kirk Williams, who was in town and talking to residents Saturday.
Degroot has been on the run since Thursday, when he allegedly fired on police after they showed up to investigate a dispute between two people possibly over the condition of animals he was keeping.
When police returned fire, he fled into the woods.
Neighbour Patty Burge said Degroot has been living in his van for the past year on a lot that has a small barn on it. His animals included cows, pigs and 25 chickens.
She said DeGroot had fallen on hard times over the past year and was having problems feeding his animals.
A village-wide lockdown that was in effect Friday was lifted Saturday except for the area on the other side of the river where Degroot lived.
Police presence in the town is still heavy.
At the RCMP command post, located in the Village of Slocan office, a number of officers wearing camouflage were preparing for another day of searching the woods surrounding the community.They have also searched Degroot's home and seized a number of firearms. Some residents say Degroot mentioned having a military background.
Extra resources have been brought into the small village to assist in the manhunt, including air support, the Southeast District Emergency Response Team, a crisis negotiator, police dogs and a tactical armoured vehicle.