The incident took place around 7:30 p.m. Wednesday on N.M. 599 near Airport Road.
Santa Fe police spokeswoman Andrea Dobyns says both women and a female friend were traveling southbound when mother and daughter got into an altercation.
Dobyns says the 37-year-old mother and her 20-year-old daughter rolled into the street.
They were hit by a car. The 53-year-old male driver immediately stopped.
Mother and daughter were pronounced dead at the scene.
Police have not released their identities but say they are from San Ildefonso Pueblo.
A witness says both women had been drinking.
Dobyns says no charges will be filed against the driver.