Residents fled the area when a fierce gun battle ensued around 8pm Saturday and lasted for about two hours. Many houses and properties were also set on fire during the conflict.
Seven people are currently receiving treatment at the Bolgatanga Hospital after sustaining gunshot and machete wounds.
Police say the clashes on Saturday are related to a longstanding chieftaincy dispute.
Joy News Correspondent in the area, Albert Sore, says Atulbabisi has been a hotspot since February when two royal gates started claiming ownership of the Bolgatanga skin.
Two persons, one from each of the conflicting gates are holding themselves out as chiefs, Albert reports.
Police and Military personnel have taken over the area, but Albert reports no arrests has been made.
Upper East Regional Police Commander, DCOP Raymond Afeku, told Joy News the team of police and military personnel deployed to the area will stay on the ground to prevent further clashes.