It happened in the Southway area of Creggan on Wednesday at around 7.30pm.
The victim, aged in his 30s, was shot in the leg and taken to hospital for treatment.
The PSNI described the incident as "barbaric".
PSNI Detective Sergeant Burns said those responsible for it do not contribute to the community or represent its interests.
"Nor do they contribute anything to it," he added.
"They do it to try and exert influence, or gain control of those they claim to represent."
Sinn Fein Councillor Tina Burke condemned the attack.
She added: "There is no place for guns on our streets.