The incident occurred in the village of Tuapa involving firearms.
One of them has been released on bail after a court hearing yesterday, but has been charged with presenting a firearm.
The other is still in custody and will appear in court today but will also be released on bail.
Police Commander Tony Edwards says they're still investigating.
"Those persons have very strict bail conditions and will be monitored by Police until the next court hearing," he says.
"Once we've completed the investigations we'll be able to determine the further charges that we're going to charge them with."
Commander Edwards says both men were under the influence of alcohol when the incident occurred.
He says it's an usual event to take place in Niue.
"Our hope is that it doesn't continue... what we need to do as a law enforcement is to make sure that we keep the lid on."
The identity of the men involved has not been released but local media report that it is the husband of an associate government minister and the son of a common roll MP.