Two men were yesterday helping police with inquiries after the alleged murder of a young man.
Named by friends as Dan Bury, 29, he was allegedly stabbed near a private house at Kingsway. He died in the Royal Devon and Exeter Hospital.
Many residents on the estate were in a state of shock after the violence as a huge police operation swung into action after the incident on Monday morning.
Teams of detective and uniform officers swamped the area, assisted by police dogs and the force helicopter, which hovered over the area.
Two men being sought by police in connection with the death were arrested on Wednesday in Exmouth on suspicion of murder.
Yesterday they were being questioned by officers at Torquay.
Earlier in the week, a 26-year-old man arrested on suspicion of assault was later released without charge.
Police issued a statement saying they urgently wantd to find Lee Webber and Reece Sicklemore in connection with the incident.
Mr Bury, from a local family and understood to have two brothers, was due to be formally identified yesterday. He is believed to have attended Hazeldown School and the community college.
Flowers and tributes were laid outside the house with a variety of messages from friends and family.
A post mortem on Wednesday revealed he died from a stab wound.
News of the death spread around the town like wildfire. Teignmouth rarely suffers such serious violence and many frightened and nervous residents made sure their doors were locked, and took extra security precautions.
It is understood the parties allegedly involved were known to each other.
Supt Jim Meakin, head of Teignbridge police, stressed it was an extremely rare occurrence in the area.
'Teignmouth is one of the safest neighbourhoods in the force at present. We increased high visibility patrols in the Kingsway area to reassure residents.'
Cllr David Cox, Teignmouth's deputy mayor and ward member for west Teignmouth, said Kingsway was in a state of shock and disbelief.
'It is a terrible thing to happen, and it is an awful time for the deceased's family and friends.
'But it is important to stress just how safe Teignmouth is. There is a wonderful community spirit on Kingsway, and while many people may be deprived in material terms, they are rich in friendship and community spirit.
'As a councillor I work with a great group of residents, with a good track record of improving their community.
'That is why, despite this incident and other knockbacks, like the withdrawal of the funding for the youth inclusion programme by the county council, I am confident the community will bounce back.
'I know that Westbank, the residents' association, the police, Teign Housing and the council, will all be working together.'
Cllr Cox said residents had praised the police as being 'absolutely amazing', and he wanted to add his thanks for their efforts and reassurances.