Two people dead in Melbourne after Rye shooting, police believe ...

Residents of a Mornington Peninsula street say they are shocked the "quiet" enclave has become the site of a fatal double shooting.

Victoria Police are looking for a suspected gunman after a 29-year-old man and woman were found with gunshot wounds in Parson Street, Rye, just after 4am.

Police said despite best efforts from emergency responders, the pair died shortly afterwards. Police believe a second man fled the scene.

Parts of the street have been taped off, as homicide detectives and Victoria Police forensic officers comb the area.

Homicide detectives believe a man fled the scene of the shootings. (ABC News)

In a statement, police said a man and woman went to the Parson Street house and became involved in a fight with residents inside.

The man who died was one of the residents. The woman who attended the home also died.

In a statement, police said it was early in the investigation but they believed the people were known to each other.

"Homicide Squad detectives are keen to speak to anyone who may have information about the current whereabouts of the man or the identity of the woman involved," Victoria Police said.

Officers are expected to provide an update on the investigation on Monday afternoon.

Parson Street resident Sophie, who did not want her surname published, said she woke up and heard a "bang" that sounded like a shotgun going off.

"I didn't really hear any commotion," she told reporters.

"I didn't think anything of it because it's such a quiet area."

Fellow neighbour Jeremy Mauerhofer said the incident left him feeling "perplexed".

Mr Mauerhofer said he had lived in the street for more than six years, and had not noticed anything suspicious in the last 12 months.

"It's just very uncharacteristic for a court like this," he said.

"It just doesn't make sense. Life doesn't make sense."

Another resident on the street described the occupants of the house as "younger guys", and said she had not noticed any problems or commotion before.

Rye, located about 100 kilometres south of Melbourne's CBD, is a popular beachside holiday spot on the Mornington Peninsula.

Police have asked anyone who witnessed the shooting or has information to contact CrimeStoppers on 1800 333 000.