The worst of the violence is centered on the town of Buenavista.
Streets are deserted in certain suburbs, but in the core areas witnesses reported bursts of automatic weapon.
Believed to be infighting among factions within the agreement of the Familia.
At least three people are confirmed dead but a journalist for the local newspaper told the BBC by phone the rival gangs had removed their comrades fallen in the streets.
She said that it is violence worse hitting Michoacan State.
A shelter was set up for displaced families in Buenavista.
Army and units of the marine were shipped to the region and set up roadblocks.
During this time, the coast of the Pacific of Nayarit State authorities say the number of deaths after a shoot-out between rival gangs has now reached at least 29.
The shooting took place Wednesday at a crossroads near Ruiz in the coast of the Pacific of Nayarit State, about to the Northwest of 800 km (500 miles) of Mexico City.
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