A man was taken to hospital with gunshot wounds in the latest altercation between rival Kurdish and Somalian gangs in the Burngreave area last night.
The shooting was carried out by a rival gang 'in revenge' for a 17-year-old who was stabbed during a street fight on the street on Monday.
Local residents have reported that the cause of the violence is an escalating "drug war" between rival Kurdish and Somalian young men.
One resident, who did not wish to be named, said that the violence is a battle for territory with both gangs attempting to drive one another out of the area.
He said: "A lot of people are thinking that this is just senseless violence but in reality this is territorial warfare between two rival gangs of two rival ethnic groups.
"Apparently the drugs have gone up in price so they're trying to drive each other out. It's an economic thing.
"This is the worst it can get when people are getting attacked. They are trying to get revenge on each other and everybody is saying you don't want to be caught in this.
"If you look at Spital Hill, people are stood around different places and it's a ghost town. Everybody is scared in case they get caught up in the violence. Everyone in the community is scared."
A Section 60 order has been put in place by police overnight, meaning extra stops and searches will be carried out on people in the area.
Residents have complained that the drug problem in Spital Hill has intensified to such a degree that the gangs are dealing them and taking them in the open.
One resident has warned that, despite extra police presence in the area following the violence, another revenge attack for Wednesday afternoon is imminent.
He said: "The locals live in fear, the young people in the gangs come into the bars and exchange drugs. We can't go into the park because there are so many drug addicts there.
"It's a drug war and the neighbourhood has become infested with drugs. It was just a matter of time before they turned on each other and now it's come to the surface.
"People online are blaming the entire neighbourhood, calling us savages, but that's not fair. The real problem is deeper than that; it's a territorial drug war.
"Another attack is imminent, it's a surprise nobody has been killed yet. An innocent bystander could have been killed last night and it's all for drugs."