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According to reports, the clashes started at dawn on Tuesday and has led to many of the residents in the municipality fleeing to neighbouring Togo for refuge.
Accra based radio station Starr FM reports that houses belonging to the Chokosis were set ablaze in a coordinated arson attack by the Kokombas.
The rival ethnic groups have been at each other's throat in recent times in a dispute over a small piece of land in the community.
Last year, an attack on a Chokosi man who went with a tractor to plough the disputed land escalated into deadly dawn reprisals that led to the death of two Konkombas.
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Several properties including a tractor were also destroyed during the attacks.