A spokesperson for the production told Deadline, "There was an accident today on the New Mexico set of Rust involving the misfire of a prop gun with blanks."
Baldwin was seen in tears outside the sheriff's office following the tragic death, according to the Santa Fe New Mexican.
The Santa Fe County Sheriff's Office said a 42-year-old woman was airlifted to a hospital, where she died, while a 42-year-old man was getting emergency care at another hospital.
Production has been halted on the movie, which is being directed by Joel Souza and produced by Baldwin.
According to multiple outlets, authorities say Baldwin was the person who fired the prop gun. A spokesperson for the Santa Fe County Sheriff's Office said the incident occurred when during a scene that was either being rehearsed or filmed.
"We received the devastating news this evening, that one of our members, Halyna Hutchins, the Director of Photography on a production called 'Rust' in New Mexico died from injuries sustained on the set," John Lindley, president of the International Cinematographers Guild, Local 600 said.
Hutchins was relatively new to the industry, having mainly worked on shorts. She was the director of photography on the 2020 feature Archenemy, which starred Joe Manganiello, and was listed as part of the crew of the upcoming film Lenin Lives.
Archenemy director Adam Egypt Mortimer wrote on Twitter that he was "lucky to have known her and worked with her".
He resurfaced a previous tweet thread that praised Hutchins' artistry and style.
Michael Pessah, a cinematographer and friend of Hutchins, told Variety, "She's a wonderful, positive, creative person that was so excited to be breaking through and making movies. She was really on the upswing."
Hutchins graduated from the American Film Institute in 2015.
Others to pay tribute to Hutchins included filmmakers James Gunn, Mike Flanagan and Brandon Wilson, screenwriter and former film critic C. Robert Cargill and actors Elijah Wood, Patricia Arquette, Xander Berkeley and Alex Winter.