Ian Francis Jamieson, 63, was remanded in custody at an out-of-sessions hearing at Bendigo police station on Thursday night.

Mr Jamieson has been charged with the murder of Greg Holmes, 48, his mother Mary Lockhart, 75, and her husband Peter Lockhart, 78.

Locals said a minor feud had erupted between the neighbours – with some suggestions the disagreement in the tiny town was triggered by stirred-up dust settling on drying washing.

There was also a suggestion of a dispute over a road.

Detective Senior Constable Jason Wallace told Thursday night's hearing that Mr Holmes contacted police at 8.20pm on Wednesday to report a disturbance with his neighbour.

He said police went to the scene but could not locate Mr Holmes. However, they did see two campers nearby.

Police called Mr Holmes' mobile and heard it ringing in a nearby paddock, where they found his body with gunshot wounds.

Detective Senior Constable Wallace said police then heard a number of gunshots and left the scene with the campers.

After police had returned to Wedderburn Police Station, Mr Jamieson phoned triple-0 and told police he had murdered three people.

Police arrested Mr Jamieson after a three-and-a-half hour siege.

They found Mr and Mrs Lockhart at their property, also with gunshot wounds.

The Lockharts were well-known in the area. Mr Lockhart was part of a farming family entrenched in the region for four generations. His second wife, Mary, was from Bendigo.

The couple had moved closer to town from the Lockhart family farm, to their neat home on the Wedderburn-Lockhart Road.

Mr Lockhart, the former president of the Wedderburn Historical Engine and Machinery Society, was involved in the town's football and tennis teams.

"He joined the engine club after he retired and has been a good member and a good worker," local Geoff Maxwell said.

Greg Holmes, the son of Mrs Lockhart from a previous relationship, was a war veteran who had served in Iraq as part of Operation Desert Storm.

He had moved into a home over the road from the couple in recent years, but the war had changed him, according to local residents.

Wedderburn RSL president Bob McKenzie said Mr Holmes was grappling with the demons of war and had moved to be closer to his family.

"It's very sad to see a man like that go," Mr McKenzie said. "He will be sadly missed."

Early on Thursday as news of the deaths was coming to light, Detective Superintendent Peter De Santo told reporters it was "very hard to fathom how this has all unfolded".

Wedderburn mayor Gavan Holt said the events were "just shocking ... All you can do is respect and support the family and friends of those involved".

- with Bendigo Advertiser, Caroline Zielinski and Tammy Mills