The dispute was about alleged encroachment on a plot of land near the town, they said.
"A fight broke out where one party opened fire, leaving three persons injured. Two died at a local community health centre while another is critically injured," said Ahmedabad (rural) Superintendent of Police R V Asari.
Eight others, who were attacked with sticks and sharp objects, were being treated at a government hospital, he said.
Those killed in the incident were identified as Mahesh Bharwad and Ranjit Bharwad.
Two persons have been arrested so far and investigation is underway, Asari said.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)