The shooting happened around 1:30 p.m. in an industrial park area on N. State College Boulevard and the 91 Freeway.
According to the Anaheim Police Department, officers were there to assist a U.S. Marshal's Task Force that consisted of multiple agencies, including the California Department of Corrections and the San Bernardino County District Attorney's Office.
The suspect, 18-year-old Victor Delgadillo, was wanted for a murder in Marshalltown, which is about 50 miles northeast of Des Moines.
It's unclear what exactly prompted the shooting, but police said, "Task Force personnel and Anaheim Police contacted the suspect, and an officer-involved shooting occurred."
"One Anaheim Police officer and other members of the Task Force fired their weapons," police said in a news release.
The suspect was sent to a nearby hospital where he later died.
Police said a bystander was also struck by a bullet but was not seriously injured. He was sent to the hospital where he was treated and released shortly after.
One witness, who was at work at the time of the shooting, told Eyewitness News he heard between 15 to 20 gunshots.
"I was eating lunch when I heard what sounded like a string of firecrackers going off," recalled Donovan Jimenez. "When I turned, I saw the officers basically firing at the suspect. We all kind of hurried to the door to see what was going on. I didn't hear [officers] before yell for the guy to put his hands up or stop. Afterwards, they did. From there, we kind of saw the whole medical team come."
It's unclear what led investigators to Anaheim, but according to Marshalltown's police chief, they recently received information that placed the suspect in Southern California.
The incident remains under investigation.