The incident happened yesterday when Yamin and Musalmin had heated argument with each other over construction of a wall, which Yamin claimed was being built on his property, they said.
The argument turned violent when both of them clashed with each other and later Yamin allegedly opened fire on Musalmin and his group. The child, Abuzar, died in the gunfire while five others were rushed to hospital.
Two women also sustain gunshot injuries and their condition was stated to be serious, police said.
A case has been registered and security has been tightened with deployment of extra police personnel in the area, they added.