Three people were arrested on suspicion of attempted murder today after two men suffered serious injuries in a street shootout.
Police said the violence in Letchworth Garden City, Hertfordshire, was an "isolated" incident and they were not seeking anyone else.
Armed officers sealed off the scene near the railway station in the commuter town and recovered a number of weapons.
One eyewitness, Ellen Rose, told the BBC she believed three shots had been fired after a collision between two cars.
A taxi driver, who asked not to be named, said one man had been shot in the face three times after an argument between two men.
"As far as I know a man has been shot in the face three times," he said.
"I've been told by other drivers that one of the blokes said he was going to shoot the other and the other one said 'go on then'. And he did, three times."
Rachel Wilding, 34, who lives opposite the scene of the shooting, said she heard four shots and came out of her house to see a young man lying in the street. Another man was sprawled on the pavement nearby after apparently being attacked with a hammer.
"The guy that had been shot, he was just lying on the ground, he looked quite lifeless, in the car park," she said.
"The other guy looked terrible. He couldn't move, he was really in agony, holding his ribs.
"He'd been attacked with a hammer in his ribs and was lying on the floor by the shops."
Gary Sanderson, a spokesman for Hertfordshire ambulance service, said both men were conscious when paramedics arrived just minutes after the shooting.
Their condition this afternoon was described as "serious but stable".
Police refused to confirm whether one man had been shot in the face or comment on speculation the incident was drugs related.
Officers had sealed off Pixmore Avenue after the incident at about 11.40am.
A spokesman for Hertfordshire police said: "Three men have been arrested on suspicion of attempted murder and two people have sustained serious injuries following a shooting incident which happened at Boscombe Court, Letchworth Garden City this morning.
"Although police are seeking witnesses and information about the incident, officers are confident at this stage that there is no one outstanding in relation to what is an isolated dispute."
He said the injured men were receiving treatment in hospital and were in a "serious but not life-threatening" condition.
Assistant Chief Constable Gary Kitching said: "This is obviously a very serious situation but we are confident that we know who was involved and what caused the incident.
"This is an isolated dispute but we are very mindful how residents in Letchworth Garden City will be feeling at this time and want to reassure them."