He says he believes as many as 27 people have been killed in the attack.
Haneed Dulaimi, head of the Iraqi defence unit for the district, said: "There are at least 13 killed and some 30 injured. Two missiles hit the street."
He says there are no military facilities in the area.
The United States and Britain have pounded targets in and around Baghdad with repeated air raids since the war to oust President Saddam Hussein began on Thursday.
They say they are using precision-guided bombs and missiles which can destroy military and government targets while keeping civilian casualties to a minimum.
Iraqi and Arab television stations broadcast footage of the aftermath of the attack, showing bloodied corpses and angry crowds - images likely to stir outrage in the Arab world and among opponents of the war.
ABC news March 27, 2003{but of course it will have no effect on anyone else. no change of heart, no changing mind for the resolute patriots responsible for these deaths in the name of comfort and profit.
in the "Arab world and among opponents of the war":