Police have shot and killed a man who was allegedly walking around a suburban Queensland street armed with a gun.

Officers were called to Ernest Street in the Ipswich suburb of One Mile at 11.15am after reports of a 27-year-old man roaming around with a weapon.

Police tried to negotiate with the man, but say he threatened officers who then shot him around 12.30pm.

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He was treated at the scene but died.

Acting Commissioner David Cuskelly said the incident warranted the use of force.

"Everyone tries to get through their service without having to use that ultimate use of force, but on occasion, we need to do these sorts of things," Cuskelly said.

An emergency declaration was made to keep residents on Ernest Street and Woodford Street indoors.

The order has since been revoked.

The streets have been declared a crime scene, police said.

This shooting is under investigation by the Ethical Standards Command.