Five people are under treatment for gunshot wounds after the Red River shooting, Red River Mayor Linda Calhoun said.
One of the wounded was airlifted to a hospital in Denver, according to New Mexico State Police (NMSP).
In an earlier tweet, NMSP said that two people were killed and six people were injured.
"The scene is secure and there is no ongoing threat to public safety," said NMSP.
"All the individuals involved were members of biker gangs,” Calhoun said.
The Red River shooting took place during the Motorcycle Rally, said police.
The event's website noted that the annual rally draws tens of thousands to the town's Main Street for Memorial Day weekend.
The state police maintained that other people who sustained injuries were taken to Holy Cross Hospital in Taos and the University of New Mexico Health in Albuquerque – about 170 miles north – for treatment.
"The first officer was on scene within 30 seconds of the call going out," said the mayor.
"Additional NMSP officers have been sent to Red River," said NMSP in a tweet.
Mayor Calhoun said late Saturday night that "in light of the active shooter incident that occurred this afternoon, we still have an active crime scene and ongoing investigation. No one will be allowed near the crime scene which includes most of Main Street."
“State police, county sheriff department, and our local law enforcement are requesting local businesses to remain closed Sunday, May 28th until they complete their investigation, and the crime scene is cleared,” said the Mayor.
After the shooting, Taos, about 40 miles from Red River, imposed a curfew that will be there until 4:00 am local time on May 28, according to an emergency proclamation issued by Mayor Pascualito Maestas.
The order prohibits retailers, bars, and other establishments from selling alcohol while the curfew is in effect.
"Please be safe, and send your prayers to Red River," said Maestas in a Facebook post.