In a media update, the Independent Investigations Office of B.C. said that Degroot "sustained a gunshot injury during an interaction with two members of the Emergency Response Team."
The update also confirmed that a firearm was found at the scene.
No information was given as to who fired the fatal shot.
The investigation is in its early stages and the team — including a team director, three investigators and a forensic specialist — were expected to be in the area all week.
Degroot, 45, allegedly fired on police near the small community of Slocan after they showed up to investigate a dispute between two people — possibly over the condition of animals he was keeping.
When police returned fire, Degroot fled into the woods, prompting officers to lock down the village and evacuate schools and homes.
At a news conference Monday night, police said an emergency response team found the suspected gunman around 1.20 p.m. PT in a cabin near a gravel pit in the area.
''There was an interaction between the subject of the ongoing search and the two emergency response team members," RCMP Supt. Frank Smart said in a statement. "We can confirm the subject is now deceased.''