Police say the incident began when they were called out to investigate a report of an impaired driver on Highway 3 around 8 p.m. PT.
"A police officer located the vehicle and attempted to conduct a traffic stop ... The RCMP member exited the police vehicle and ultimately discharged his service pistol at the vehicle," said a statement issued by the RCMP
The man was rushed to hospital, but he did not survive his injuries. His name and age have not yet been released.
The incident is being investigated by B.C.'s Independent Investigations Office, which has sent a team of five investigators, including a forensic specialist, to Castlegar.