Three people are being treated in hospital after they were shot near the Kensington Market area early Sunday morning.

Police were called to the scene outside a vegan reggae party at an after-hours club at 213 Augusta Ave. around 4:30 a.m. They found three men in their 20s and 30s suffering from gunshot wounds. One was hit in the abdomen, another in the arm and the third in the leg.

Authorities say a dispute between groups at the club led to the shooting. Area residents said the club often hosts late night parties.

Jon McCurley, a witness, told CTV Toronto that he immediately called the police after hearing six gunshots. McCurley said officials arrived almost immediately and began to put people onto two city busses, creating what he called "an interrogation room on wheels."

He also said that the club was full of people and most weren't aware that the victims had been shot.

Police say the three men are expected to recover from their injuries.

Investigators spent Sunday morning questioning patrons of the club. However, suspects have not yet been identified.

The shooting delayed the opening of several businesses on the first ‘Pedestrian Sunday' of the season. The event is held on the last Sunday every month from May to October and closes down the market streets to car traffic.

Police are asking further witnesses to come forward and contact police at 416 808-1400 or Crime Stoppers at 416 222 TIPS or online at www.222tips.com.

With files from CTV Toronto's John Musselman.