Investigators said the shooting happened around 11 a.m. Saturday morning.
On Sunday a supervisor at Enloe Medical Center in Chico said, 23 year-old Tyler Kellison, the man shot, is in serious condition.
Officials with the Butte County Sheriff's Office said the hunt for the shooter continued on Sunday.
Investigators said a white man in a white Chevy S-10 shot Kellison on the 1100 block of Citrus Avenue in Palermo.
Kellison was rushed to Oroville Hospital then later transferred to Enloe Medical Center in Chico.
A white female reportedly took off from the scene on foot.
If you have any information you are asked to contact the Butte County Sheriff's Office.