UPDATE 3pm Friday: Police have released the name of one of the deceased.
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It is confirmed that Alexander Michael Flockhart, 33, of West Moonah, died in the incident at Bridgewater.
Police again appealed for anyone with information to contact Glenorchy CIB on 6268 4106 or Crime Stoppers on 1800 333 000.
EARLIER: IN A bizarre double murder two men have killed each other near Hobart in what appears to be a drug-related dispute.
A family member discovered the gruesome deaths in a home in Bridgewater's Cowle Road just after 7pm on Wednesday.
It's unclear how it unfolded but the man, 34, living in the home was stabbed either shortly before or after he shot a man, 33, from Moonah.
Both died from their injuries at the scene.
The home was a family residence but no other occupants were present.
Bridgewater CIB's Detective Sergeant Michael Smith said the two men were known to each other.
Police said it appeared to be an ongoing feud that had become fatal.
Neighbours told reporters that the drug ice was being sold from the home, however, police would not confirm this.
It was unclear from the investigation who had attacked who first, Detective Smith said.
"It's pretty unusual to say the least," he said.
"We'll look at all avenues to establish the exact circumstances of how the two men knew each other and what led up to the events of last night."
Bridgewater was witness to a number of drive-by shootings last year.
In one instance a man was shot in the leg as he crossed the Jordan River Bridge.
It's unclear if the double murder is connected.
A community trauma group has been dealing with affected family members and emergency service staff have been offered counselling.
Forensic specialists examined the scene yesterday and detectives made inquiries to determine what had occurred.
Anyone with information should contact CrimeStoppers on 1800 333 000 or Bridgewater Police on 131 444.