The border region is known for drug and gun smuggling, as well as political corruption.
Last week another Brazilian journalist who exposed corruption - Mario Lopes - was shot dead in Rio de Janeiro State.
Paulo Rodrigues, 51, was editor of the Jornal da Praca newspaper and the website Mercosulnews.com.
The gunmen fired 12 shots at him as he drove through Ponta Pora, hitting him five times, police said. He died of his wounds in hospital.
Colleagues said the motive for the killing was a mystery.
"He was a critic, but he was beloved," photographer Leo Veras told the Associated Press.
"The newspaper defends the poor in our city and Paulo criticised corruption, but he was respected by leaders," he added."
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