The second victim was taken to hospital with moderate injuries.
The alleged offender was arrested at the scene.
“A scene examination is now under way and the road is expected to remain closed for some time,” police said.
“Diversions are in place and motorists are asked to avoid the area.”
Hato Hone St John said it took one patient to Whakatāne Hospital in a moderate condition and referred further inquiries to police.
NZ Transport Agency (NZTA) said State Highway 2 between Manawahe Rd and Caverhill Rd was closed and motorists were advised to follow directions by crews on the site and allow for additional time for travel through the area.
But the road has since reopened after the fatal road incident.
NZTA said the road reopened between Manawahe and Caverhill Rds at 6.40am today.