Police are investigating links between a shooting and aggravated burglary which occurred at the same time in neighbouring suburbs in Melbourne's west.
Colleen Howell, who was on Derby St, says she heard between four to six gunshots at 12.20pm on Thursday outside a Kensingston housing commission building.
"I heard gunfire - bang, bang, bang, bang," she said on Thursday.
"I've lived here for 32 years and we regularly hear fireworks but this was literally gunfire.
"There we no cars, only people walking."
Detective Inspector Stephen Cooper said investigations were ongoing, but he was unable to reveal if bullets had been found, or whether a shooter had been seen or identified.
"I can't say exactly where shots have been fired but the information we have from the public is that shots have been fired," he told reporters.
"We are currently investigating the circumstances around it and we are looking at a large amount of information.
"We are calling on the public that if they have any information whatsoever to give us a call."
Det Insp Cooper said police were investigating whether the shooting was linked to an aggravated burglary in North Melbourne about 12.20pm.
Police are also investigating reports of a person or people getting into a black hatchback after the incident.
At least eight police officers remain stationed at the corner of Derby St and Wolseley Parade in Kensington.
A nearby school, Holy Rosary Primary School, went into lockdown after hearing shots, an employee told AAP.
Kensington resident Matthew said it was a pretty quiet area.
"But you have a commission building, things happen around this area," he told AAP on Thursday.
No injuries have been reported and police have closed off the street as they search for clues.
