Damage was caused to three cars from gunshots after two groups of up to 20 men were seen fighting with iron bars and lengths of wood in the road.
One man was seen bleeding heavily from the head as he fled down the street and witnesses described a masked gunman dressed in black holding what they described as a rifle, and then firing it.
Two men were treated at hospital for injuries consistent with being hit with a metal bar.
Police and councillors last night joined residents in condemning the violence, which happened in Grantham Road, Great Horton , Bradford, at about midnight yesterday.
One family, who were too frightened to be identified, told how they were woken by shouting and swearing and then heard gunshots.
The couple, who have three young children, said drug dealing from cars went on in the street at both daytime and night-time.
The man said: “I looked out of the window and saw between 15 and 18 young Asian men fighting in the middle of the road. They were in two groups. One man was hitting another with a three-foot-long stick while he was on the ground. I also saw what looked like metal bars being used.
“I saw four men running away down the road. One was bleeding heavily. Two men got out of a black car. They were wearing black masks and came running into the street, shouting and swearing. One of them was holding a gun. It was three or four feet long and looked like a rifle.
“He went up the road and fired four or five times into three cars. The windscreen of one was shattered and damage was caused to the mirrors of the others. One had damage to its front and side.
“We have told police about the drug dealing that goes on around here. They park at the top of the road every night. They are local Asian people who are involved.”
His wife said: “I was woken by the sound of four or five gunshots. They were very loud bangs a couple of seconds apart, and clearly weren’t fireworks.
“It is disgusting. There are a lot of families and children living around here. A couple of years ago a primary school age child picked up a wrapper containing drugs and took it home.
“I won’t let my children out on the street in the summer. They have to play in the garden and I watch them all the time. I feel that I am taking their childhood away, and they don’t deserve it.”
Police are still investigating the motive. They confirmed three vehicles, a Mitsubishi, a Volvo and a Toyota, were damaged.
Two men, aged 25 and 23, who attended hospital for treatment to their injuries were arrested and remained in custody last night.
Bradford District Chief Inspector Dan Greenwood, in charge of crime and operations, said: “We will not tolerate such violence on our streets and we are working hard to identify and locate each of those involved.
“There is nothing to suggest that anyone has been injured as a result of the firearms discharge, however, we believe that metal bars may have been used as weapons, causing injury to the individuals concerned.
“Those found to be involved in the use or possession of firearms will discover there is only one outcome, which is a lengthy spell behind bars.
“We are determined to bring those responsible to justice, but we need the public’s support to remove these people from our community.
“If you have witnessed this latest incident, or have any information which could assist, please contact Bradford South Police on the non-emergency number 101, or Crimestoppers, anonymously, on 0800 555 111.”
Ward Councillor Nazam Azam (Lab, City) said: “I condemn the use of any sort of violence, but gun crime is beyond words. It will not be tolerated. I will be liasing with the police and I hope we can get to the bottom of this.”
Neighbourhood Policing Team Sergeant Jonathan Best said: “Tackling drugs remains a priority and we are working hard to target those involved, whilst encouraging people to report offences as and when they happen.
“If you suspect drug dealing in your area, let us know and we will take action.”