It happened as police came under attack.
She died shortly after tweeting a photo of a police vehicle being pelted by petrol bombs, with the caption: "Derry tonight".
Images of the unrest posted on social media showed a auto and van ablaze and hooded individuals throwing petrol bombs and fireworks at police vehicles.
Thursday's violence broke out after police were carrying out a search operation looking for firearms that may have been used over the Easter weekend, which marks the anniversary of the 1916 Easter Rising, a time when dissidents are traditionally active.
"The inevitable reaction to such an incursion was resistance from the youth of Creggan", added the statement.
Images of the unrest on social media showed a auto and van ablaze and hooded individuals throwing petrol bombs and fireworks at police vehicles.
A murder investigation has been launched.
She had recently moved to Derry to live with "love of her life" Ms Canning and was also an editor for California-based news site Mediagazer, a trade publication covering the media industry.
Her partner Sara Canning told the crowds that McKee's death had left the LGBT+ community "without a tireless advocate and activist", and her "without the love of my life".
Politicians in Northern Ireland have warned that Britain's plans to leave the European Union could undermine the peace deal and that any return of restrictive infrastructure along the Irish-Northern Irish border would become targets for militants. This was an act of cowardice. "A republican volunteer attempted to defend people", it said. Police had been met with gunfire and gasoline bombs when they entered the area on a tip.
British counterpart Theresa May said the killing was "shocking and truly senseless".
"We will continue to work positively and sensitively with the local community to achieve this", he continued.
The group is also blamed for a Londonderry auto bombing in January and has been linked to several other killings in the past decade.
The funds will go McKee's family, for funeral costs and "to decide her legacy".
"This was an attack on the community, an attack on the peace process".
In a rare joint appearance Friday, Democratic Unionist Party (DUP) leader Arlene Foster and Irish republican Sinn Fein party leader Mary Lou McDonald condemned the killing.
"Those who brought guns onto our streets in the 70s, 80s & 90s were wrong". As a gay woman, Lyra wrote about her experiences of growing up gay in a country where gay marriage remains illegal.
Lyra was part of a generation of young Northern Irish people who wanted to put the country's troubled past behind it, to forge their own post-sectarian identity.
The New IRA is a small group that rejects the 1998 Good Friday agreement that marked the Irish Republican Army's embrace of a political solution to the long-running violence known as "The Troubles" that claimed more than 3,700 lives.
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