Several building fires were reported by residents as well, but police didn't immediately confirm details.
"I never imagined when I went to bed last night that I would wake up to the horrific news that an active shooter was on the loose in Nova Scotia," Nova Scotia Premier Stephen McNeil.
"This is one of the most senseless acts of violence in our province's history," he said.
Police stated earlier that the suspect was driving a car that looked like a police vehicle and wearing a police uniform, but later said he was "believed to be driving a small, silver Chevrolet SUV," travelling southbound on a highway. They said he is not an RCMP employee or officer.
A spokeswoman with the provincial force, said police received a call about "a person with firearms" and the investigation "evolved into an active shooting investigation."
Christine Mills, a resident of the town, said it had been a frightening night for the small town, with armed officers patrolling the streets. In the morning, helicopters flew overhead searching for the suspect.
- AP