A high school prom celebration in northwest Indiana ended in tragedy when gunfire erupted at an after-party, killing a 17-year-old boy and injuring two other teens as terrified students ran for cover.

Police say Michigan City High School students had gathered at a rented home in Pine Township just outside Michigan City, following Saturday night's prom, when shots were fired shortly after 11pm.

Officers arrived to find three young people suffering from gunshot wounds.

Seventeen-year-old Javon Townsend later died at Franciscan Hospital in Michigan City after being shot three times, according to the La Porte County Coroner's Office.

Two other victims, 18-year-old Ginger White and 17-year-old Jeremiah Heard, survived and remain in hospital.

Authorities believe the shooting stemmed from a fight and described it as an isolated incident, although no arrests have yet been announced.

Police say the violence unfolded at a rented home on Liberty Avenue where dozens of high school students had gathered following Michigan City High School's prom celebrations.

Neighbors described a horrifying scene as what began as a celebratory night spiraled into chaos.

'I heard about 25-30 shots,' neighbor Adam Oszuscik told WGN-TV.

Another witness, Rachael Wilkerson, described 'round after round after round' of gunfire as teenagers screamed and dropped to the ground.

'There were some people crying, some people were screaming,' Wilkerson told WSBT.'People literally hit the ground.'

Authorities said the shooting is believed to have stemmed from a fight, though investigators have not announced any arrests or publicly identified a suspect. 

Police described the gunfire as an 'isolated incident' and said there was no continuing threat to the community.

Townsend's devastated family said the loss has shattered them.

'He'll never have the chance to graduate, go to a senior prom,' his grandmother Alesia Vinson told ABC7 Chicago. 'It's just so much of life he's going to miss out on senselessly.'

Townsend's cousin Jason Mojica struggled to describe the pain gripping the family.

'I can't describe it. I can't do nothing but cry. It hurt me,' he said.

A GoFundMe page created after Townsend's death described the teenager - lovingly known as 'J Boog' - as a 'fun, caring, and loving spirit' whose presence 'always shined wherever he went.'

The fundraiser said his death left 'a deep void in our hearts and in our community.'

The two surviving victims remain hospitalized as the community prays for their recovery.

Heard, a 17-year-old football player at Michigan City High School, was shot in the chest and has undergone multiple surgeries, according to relatives.

His mother, Lucero Segovia, told WGN9 she learned her son had been shot through an automated hospital notification.

'I opened it up and it said, 'Jeremiah Heard is being treated for a gunshot wound,' she said. 'That's how I found out my son was in the hospital.'

Segovia said her son managed to drive himself to a hospital after the shooting and walked inside telling staff: 'I've been shot.'

'There are no words to describe how I am feeling, because I'm in shock. I'm numb,' Segovia said.

The single mother spent Mother's Day at her son's bedside at the University of Chicago Hospital.

'The only thing I can say is that I'm thankful I still have my baby to hold, see and touch,' she added.

A GoFundMe page set up to help pay for Heard's medical expenses said students who attended the celebration 'will unfortunately never be able to forget' what happened that night.

'A night that should be remembered for having fun and celebrating with your closest friends and classmates resulted in a horrific night,' the fundraiser read.

White, the 18-year-old female victim, was shot moments after arriving at the party, according to her mother.

'She heard the shots. She took off running,' Ariel White told ABC7. 'She had realized she had been hit; so she hit the ground then rolled underneath a car.'

Neighbors said the quiet residential street became a scene of terror as students scrambled for safety.

Cars lined both sides of the road while frightened teenagers fled through wooded areas and onto nearby highways after the shooting erupted.

One bullet tore through the front door of a neighboring home, narrowly missing resident Kimberly Horn.

Horn told Fox 32 she initially believed the sounds were coming from a television show she was watching until she discovered a bullet inside her living room.

'I turned on the living room light, and then you could see the bullet was on my carpet,' she said. 'That was kind of scary.'

Another nearby resident, Mike Schnell, said the neighborhood had never experienced anything like it.

'I just came back to my house, and I sat on my couch and cried, you know, just for the sadness of everything,' Schnell told CBS News.

Neighbors said the property where the party was held had frequently been rented to vacationers and short-term guests. 

According to residents, the homeowner believed the house had been rented for a Mother's Day gathering.

'When he rented to the guy, he had said that it was the guy was renting it for him and his mom, for Mother's Day,' Schnell told WSBT.

Michigan City Area Schools confirmed students from the district were involved and said grief counselors and support resources would be made available.

'Michigan City Area Schools is aware of the tragic off-campus incident involving several Michigan City High School students following prom activities,' the district said in a statement.

'Our thoughts are with the students, families, and everyone impacted during this difficult time.'

Friends and classmates said the violence has affected the entire community.

'And it just kind of traumatized,' Teddy Jay, who said many of his friends were at the party, told Fox 32. 

'They're shaken up about it.'

Authorities are continuing to investigate the shooting, and a $5,000 reward has been offered for information leading to an arrest.