The shooting took place in the city of Seal Beach, California, in a retail area off the Pacific Coast Highway.
Three other people were shot and are in a critical condition, Police Sgt Steve Bowles confirmed to the Associated Press news agency.
Police say they have a suspect in custody after arresting a man nearby. Multiple weapons were seized.
The shooting occurred at about 13:30 PDT (21:30 GMT) at a hair salon called Salon Meritage.
Sgt Bowles said a suspect was arrested shortly after the shooting.
"The officers identified the [suspect's] vehicle as it was leaving the location," Sgt Bowles said. "They followed it and made a traffic stop and took the driver into custody."
The motive for the shooting was still unclear.
Police from nearby towns were assisting with the investigation.
"A crime of this magnitude is not something Seal Beach is familiar with," Sgt Bowles told reporters.
Seal Beach is a beachfront city of approximately 25,000 residents, located about 30 miles (48km)south-east of Los Angeles.
It is home to a gated senior citizen community of 9,000 people, as well as the Seal Beach Naval Weapons Station military complex and a national wildlife refuge.
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