Governor Jamleran Tipayapongtada reached agreement on the terms of the investigation in talks with 10 community representatives at Baan Don school, not far from the Thalang Police Station in central Phuket.
Phuketwan learned today that 14 police were injured by protesters last night. Photographs of the injured police are in the album that accompanies this article.
About 80 police attempted to control the riot before a contingent of soliders arrived to restore order.
As well as nine destroyed cars, 13 others were damaged. Five motorcycles were also damaged.
The governor said today that the bodies of two young men, Patomwat Panarak, 22, and Teerapong Srisamut, 17, who died as a result of a police pursuit yesterday, would be autopsied to ascertain the cause of death.
Relatives said they remained puzzled why it took an ambulance 30 minutes to attend and why police sought to clear people away from the scene of the fatal crash.
Army officers and family representatives will act as observers during the 30 day investigation by doctors, police, a vice governor and other officials.
No guarantee could be given that there would be no charges laid over the broken windows and the torched cars, the governor said. Charges are also likely to be laid over the assault of police.
Army Major General Theenajak Jindange, who settled the 15-hour riot after he arrived at 3.30am with a contingent of 200 soldiers, told the protesters they needed to be more sensitive to tourism because Phuket was such an important part of Thaland's economy.
''If you damage your cooking rice, what will you eat,'' he said. Four police officers that the villagers wanted to confront over the deaths of the young men have already been transferred off Phuket.
PHUKET: ''Peace talks'' began today at a school near the Phuket police station where residents torched cars and brought mayhem to the Thai holiday island for 15 hours.
A man sidled up to a Phuketwan reporter as a crowd grew at the school and an armed detachment of soldiers stood ready nearby.
''Be careful today,'' he said in English. ''If this crowd gets the policemen, they will kill them.''
Anger was obvious on the faces of women especially as they talked to two Army officers, anticipating the arrival of Phuket's governor who will be expected to negotiate a solution.
Baying for blood, an angry crowd of local residents besieged Phuket's Thalang Police Station for 15 hours until the intervention of soldiers about 3.30am brought the mayhem to an end.
Women were still obviously grieving and shouting today at the schoolyard over the deaths of two young local men in a motorcycle crash yesterday morning, a crash that the locals blame on the pursuing police.
The crowd was growing again today at Baan Don school. Telephone cameras were being raised as the crowd surrounded two Army officers, who had at their backs several soldiers, with more around a corner, assembled on the school netball court.
The anarchic display by villagers is a Phuket tradition but blockading streets - especially those that tourists use to get to and from Phuket International Airport - is frowned on by the authorities.
The crowd last night wanted to talk to the police and demanded an apology for what had happened. But clearly, that's not something that the Army and authorities can permit to happen.
''We don't want police on Phuket island,'' one woman yelled. ''They are all corrupt.''
The 22-year-old who was killed was the family's only child. The 17 year-old was the youngest child of another family.
Drinking the illicit leaves of the kratom plant was a regular habit of the young, protesters said. But the two young men were good young men and did not get involved with harder drugs, they said.
The deaths were the latest and most significant breach of standards by the police and intolerable, demonstrators told the officers in advance of the governor's arrival.
At 10.15am, talks began inside a sports building at the school, with speeches being relayed to the crowd by loudspeaker. There were cheers as some points were made.
The father of the 22-year-old said: ''I have only one son. What can I get that will ne the equivalent of my son's life?
''Do you how much pain I feel inside today? What is my future?''
The 15 hours of anarchy overnight led to Phuket's main road being blocked and some passengers missing their flights but is not expected to have an effect on tourism.
The crowd continued to grow for today's peace talks but the atmosphere was more picnic-like than revolutionary, even if shouts and cheers greeted every mention of it being time to bring an end to police corruption on Phuket.
And fortunately, the only killing was the one being made by the mobile ice cream salesman who was doing a roaring trade.