Six people were shot, one fatally, after gunfire erupted following a peace rally at a public housing community in Alabama, police said.

A number of gunmen opened fire on the peaceful rally, killing one man who was named locally as Bobby Clayton.

Police sergeant Bryan Shelton said all six people who were shot were innocent bystanders.

Six people were shot, one fatally, after gunfire erupted following a peace rally at a public housing community in Alabama on Sunday night, police said. Scene pictured above

The victim has been named locally as Bobby Clayton from Birmingham, Alabama, pictured

Police confirmed that all of the six people shot, including Clayton, pictured, were innocent

The attack happened at City Gate in Birmingham, Alabama shortly after 8.25pm according to AL.com.

The condition of the other five victims was not immediately available, but Shelton said none are critical.

The shootings took place about an after a 'Stop the Violence Gate City Peace Day' event ended in the community's Lewis Park, police said.

The peace rally was about two blocks from the scene of the shooting.

After shots rang out, residents who were outside following the event dispersed as the chaotic scene unfolded leaving the victims scattered along the block.

One resident had just finished his son's one-year-old birthday party and attendees were grilling and walking down the moonwalk when the gunfire erupted.

'I ran and tried to grab all the kids and get them inside,' 23-year-old resident Xavier Story told AL.com.

'I'm getting as low as I can and trying to get my family in the house.'

After he was able to get loved ones to safety, he went back outside where one of the victims who was in his early 20s collapsed, according to AL.com.

The shootings took place about an after a 'Stop the Violence Gate City Peace Day' event ended in the community's Lewis Park (pictured), police said

The victim, Story's friend, was reportedly hit on the upper left side and fell face down.

As they waited for emergency responders to arrive, Story said his friend still had a pulse and that they applied towels to his wounds.

'I'm just shook up right now,' Story told AL.com. 'It's the scariest thing ever in my life.'

Police are investigating the incident while details about suspects and a motive were not immediately available.