According to police, Telugu Desam Party workers and YSR Congress Party workers clashed with each other when YSR Congress candidate Srikanth Reddy was campaigning in the town, which is considered to be a stronghold of the TDP.
The TDP supporters pelted stones at YSRCP workers when they tried to canvass forcibly and were chased away, police said.
Reacting to the incident, Srikanth Reddy's gunman opened two rounds of fire at the TDP supporters and a TDP worker, Veera Nagi, was injured, police said.
The injured was admitted to a government hospital where he is undergoing treatment.
Later, the YSR Congress Party candidate went by the main roads of the town with police protection and completed his campaigning.
However, TDP workers and supporters were camping near a temple in the town under the leadership of former MLA Lakondarayudu, police said.
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Circle Inspector Sriramulu is supervising the preventive security arrangements. The district police has registered a case in the incident.
Rayachoty is 54 kms away from Kadapa, which is the parliamentary constituency of YSR Congress chief Jaganmohan Reddy, who is under CBI custody in connection with a disproportionate assets case against him.