Officers responded to shots fired calls at the Sunnyside Family Apartments on D Street near 9th Street around 9:30 pm.
Investigators found a 22-year-old woman suffering from gunshot wounds. The victim was flown to a Modesto hospital, where she later died.
Police have not yet determined what led up to the shooting.
Detectives are now investigating her death as a homicide. Investigators are searching for witnesses and reviewing surveillance video from the area.
Anyone with information is asked to call the Merced Police Department.
This is Merced's seventh homicide of the year.