Authorities believe the three inmates escaped Sunday from the maximum-security prison in Michigan City through underground tunnels and pipe chases.
Grand Beach Police Chief Dan Schroeder said authorities were maintaining a heavy presence in the town because they don't know if the escapees still are in the area.
"This is a large area and there's all different kinds of places they can hide," Schroeder said about the heavily wooded community.
The escapees could conceal themselves in the woods, in the tops of trees, in a ditch or a creek, behind homes or on the beach, Schroeder said. "Hiding (in Grand Beach) is really not that much of a trick actually," Schroeder said.
Many residents of Grand Beach -- including those who commute from Chicago for weekend and summer stays -- said they weren't scared. They continued to keep their doors unlocked and taking walks up and down the quiet streets. Many residents use golf carts to get around.