The two groups led by farmers Arjun Singh and Jasbir Singh respectively clashed over sharing of canal water in Ratarwan village, about 25 km from here, and later both the sides started firing at each other, police said.
In the cross-firing Arjun Singh and Jasbir Singh were critically injured.
Both were first taken to Pathankot civil hospital and later referred to the Guru Nanak hospital in Amritsar as their condition turned critical, they said.
The two groups had clashed over canal water earlier also, police said.