SHOTS have been fired and villagers plan a protest at Phuket City police headquarters as a dispute over land on a large estate continues to escalate.

Governor Wichai Praisa-ngob visited the Ket Keaw Villa site in Vichit, north of Chalong Circle, in pouring rain this week in response to the demands of protesters at Provincial Hall in Phuket City.

Phuketwan was told that 23 of the 103 families involved have paperwork recording payments on mortgages on the property dating back to 1990.

But the original Ket Kaew project was taken over first by one developer, Rasadanakorn, then by Phanason.

Some families have paperwork recording payments on mortgages with Rasadanakorn. Other families in need of housing simply moved in to incomplete homes and have been living on the site for more than 10 years.

Phanason has been trying to evict all families from the site, both the squatters and those who have paperwork, residents say.

Some of the estate's residents, left by the previous developers with houses that were half complete, have paid to finish the homes themselves.

Villagers say Phanason has created a drainage system than now floods their streets in heavy rain.

After touring the site this week, Governor Wichai said a Phanason spokesman told him about 20 families had been paid to leave the property.

Other cases were in the court system. But the villagers say they are being pressured to capitulate and leave.

Police are investigating an incident that occurred three weeks ago when a construction worker arrived at Soi 2 on the estate and became involved in a confrontation with a resident.

The construction worker dug the land with a backhoe up to the shoes of the resident, bringing other residents out in protest, reportedly carrying knives and pieces of wood.

At that point, the construction worker allegedly fired fired four shots into the air.

Lieutenant Colonel Piyawat Buakao of Phuket City is still taking statements. But one of the estate residents, Rung Boonyern, said the case was taking too long and villagers were likely to mount a public protest.

On Friday, though, talks are being held with a new committee set up by the governor in the hopes of finding a means to end the dispute.

Phanason has three large housing projects underway on the island.