Those living in the Boston, Massachusetts, area are waking up to chaos, as a massive manhunt for one of the men allegedly responsible for the Boston Marathon bombing is underway.

With Suspect Number 2 still on the loose, police have businesses and residents on alert in the suburbs surrounding Boston. Federal, state and local authorities have spread around the local suburb of Watertown, among other areas, where they are working diligently to try and track him down.

Police Put Boston Suburbs on Lock Down as Manhunt for Boston Bomber Continues

Boston Police Commissioner Edward Davis speaks during a media briefing in the parking lot of the Watertown Mall on April 19, 2013 in Watertown, Massachusetts. Earlier, a Massachusetts Institute of Technology campus police officer was shot and killed late Thursday night at the school’s campus in Cambridge. Credit: Getty Images

Police are reportedly going door-to-door and telling people to stay inside of their homes. Authorities have made this recommendation for residents in Watertown, Newton, Waltham, Belmont, Cambridge and the Allston-Brighton neighborhoods of Boston to stay indoors. 

The Massachusetts Bay Transit Authority (MBTA) has suspended all public transportation in the area as well, showing just how dire the situation has become. Businesses are also being asked not to open. By all accounts, the area has been entirely shut down.

Police Put Boston Suburbs on Lock Down as Manhunt for Boston Bomber Continues

A Boston police officer allows police vehicles out of a closed area as a search for the second of two suspects wanted in the Boston Marathon bombings takes place April 19, 2013 in Watertown, Massachusetts. Police killed one of the suspected Boston marathon bombing suspects in a shootout early today and pursued a chaotic deadly street-to-street manhunt for his accomplice, officials said. Credit: AFP/Getty Images

The announcement Friday morning comes hours after the killing one suspect, known as the man in the black hat from marathon surveillance footage. The man in the white hat is on the loose and police are calling him a “terrorist” who came here “to kill.”

“We believe this to be a terrorist,” said Boston Police Commissioner Ed David of the remaining suspect. “We believe this to be a man who’s come here to kill people. We need to get him in custody.”

TheBlaze’s Jason Howerton followed this story throughout the night. Alerts about police activity began to emerge late Thursday night; other casualties followed.

As previously reported, the Middlesex district attorney said the two men are suspected of killing a Massachusetts Institute of Technology police officer on campus late Thursday, then stealing a car at gunpoint and later releasing its driver unharmed. Hours earlier, police had released photos of the marathon bombing suspects and asked for the public’s help finding them.

A new photo of the suspect on the loose was released later showing him in a grey hoodie sweatshirt. It was taken at a 7-Eleven in Cambridge, just across the river from Boston.

Police Put Boston Suburbs on Lock Down as Manhunt for Boston Bomber Continues

A police officer runs with his gun drawn while searching for a suspect on April 19, 2013 in Watertown, Massachusetts. Earlier, a Massachusetts Institute of Technology campus police officer was shot and killed late Thursday night at the school’s campus in Cambridge. Credit: Getty Images

The MIT shooting on the Cambridge campus Thursday night was followed by reports of gunfire and explosions in Watertown, about 10 miles west of Boston. There were also unconfirmed reports of three other injured officers.

The MIT officer had been responding to report of a disturbance Thursday night when he was shot multiple times, according to a statement from the Middlesex district attorney’s office and Cambridge police. It said there were no other victims.

Authorities say the suspects threw explosives from the car as police followed it into Watertown. The suspects and police exchanged gunfire, and one of the suspects was critically injured and later died at a hospital while the other escaped.

Watch video footage of the shootout, below:

In Watertown, witnesses reported hearing multiple gunshots and explosions at about 1 a.m. Friday. Dozens of police officers and FBI agents were in the neighborhood and a helicopter circled overhead.

State police spokesman David Procopio said, “The incident in Watertown did involve what we believe to be explosive devices possibly, potentially, being used against the police officers.”

Boston cab driver Imran Saif said he was standing on a street corner at a police barricade across from a diner when he heard an explosion.

“I heard a loud boom and then a rapid succession of pop, pop, pop,” he said. “It sounded like automatic weapons. And then I heard the second explosion.”

He said he could smell something burning and advanced to check it out but area residents at their windows yelled at him, “Hey, it’s gunfire! Don’t go that way!”

The Associated Press contributed to this report.

This is a breaking news report. Stay tuned for updates.