Police say 20-year-old Ian Berrier brandished a replica handgun at officers in the area of Hoskins Lane and Milo Drive at about 4:30 p.m.
It all started with an argument between Berrier and a woman behind a nearby restaurant. A witness told police the suspect had threatened him with a gun.
A police helicopter helped to locate the two people in a residential neighborhood.
An officer confronted the suspect, who pulled out the gun, which was later determined to be fake. The officer opened fire, and Berrier was pronounced dead at the scene.
The Orange County Sheriff's Department is investigating the shooting.