Three people have been charged with "graffiti vandalism" after allegedly painting over the rainbow pedestrian crossing in Gisborne's CBD earlier this week.
Inspector Danny Kirk of Tairāwhiti said police have also identified a fourth suspect, who they're still hunting down.
"We consider that, on the face of it, the alleged offending is consistent with a hate crime, and we will seek to establish that as fact during the ongoing investigations and court proceedings.
Two men, aged 36 and 46, and a woman, 45, have since been charged with vandalism.
"This incident has caused concern for many people in our diverse community and acts like this have no place here," said Insp Kirk.
"Freedom of speech and the right to protest are fundamental principles of a free and democratic society under the rule of law."
But he said a line had been crossed this time.
"Police will be seeking reparation of costs," he added.
On Monday night, people linked to Destiny Church painted over the rainbow crossing in Gisborne's CBD with white paint.
Mayor Rehette Stoltz said the council "strongly condemns" the vandalism, saying it would be restored as soon as possible.
"We accept that people hold different views however there is no place for hate or bigotry in Tairāwhiti."
The rainbow crossing was restored by Wednesday morning.
The trio charged are set to appear in the Gisborne District Court next Wednesday.