Security forces are reportedly trying to retake the Kitshanga town.
Fighting has again erupted in the eastern Democratic Republic of Congo between pro-government forces and rebels from the M23 group.
Residents say the rebels have occupied the town of Kitshanga in North Kivu province since Saturday.
Several people have been taken to hospital with gunshot wounds, a local radio reported.
“The rebels are in Kitshanga and we are trying to find a way to retake the town,” a security source told AFP news agency.
The area has changed hands several times since the beginning of the year.
Fighting resumed three weeks ago after a six-month truce. The area was previously patrolled by an international force provided by Congo’s neighbours.