RCMP said they responded to reports of a double stabbing in a residence Sunday morning.
The Mounties said they found three men, one of whom was already dead.
Police took one suspect into custody and sent another to hospital after he was shot during the arrest.
The province's police watchdog said the man has since died of his injuries.
The Independent Investigations Office of BC is on the scene looking into the shooting.
The organization probes police-related instances of death or serious harm in the province in cases where police are involved.
No police or other members of the public were injured in the altercation.