The shooting happened just after 3:30 p.m. Friday near Chicago and Homan avenues in the city's Humboldt Park neighborhood.
Witnesses say it stemmed from an alleged road rage argument involving two women.
One woman, 27-year-old Shaday Ingram, was killed and another was taken into custody.
She was released without charges, and police say the investigation is ongoing.
INTERACTIVE SAFETY TRACKER Track crime and safety in your neighborhood