The discovery was made around 3 p.m. in the area off Main Street.
Police confirmed that four adults died. There was no immediate word on the cause of death but no foul play was suspected.
"It's shocking, very shocking," Stanton resident John Santiago said.
The discovery was made near a Walgreens store in the area, which attracted a number of curious onlookers and friends and relatives of the victims.
"That's scary that something so close. I live right in Newport, so way too close for comfort for me," Newport resident Kat Ford said.
Relatives and friends of the victims declined to speak on camera, but say the four victims are an uncle, his nephew, his girlfriend and a friend -- all from the area who were living homeless.
Although no official determination has been made, initial indications are the victims may have been overcome by fumes from a propane heater inside their tent.
The Delaware Division of Forensic Science will conduct an autopsy to determine the manner and cause of death.