Witnesses told police that gunmen in three pickups, wearing ski masks and dressed in black, fired on a crowd outside a dance hall.
Authorities did not give a motive for the attack but more than 800 people have been killed this year in Chihuahua, most of the deaths attributed to battling drug cartels.
Creel police officer Rosendo Chavez said the picturesque tourist town had previously been spared from the violence raging through the state.
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