A “knight in shining armour” wielding a samurai sword has left behind a grieving family after being shot dead by police in regional NSW.

Multiple shots rang out through the Bathurst suburb of Kelso on Wednesday evening after police were called to the home of Ian Fackender over his “recent behaviour”.

The officers were at the back door of the property attempting to speak with the 47-year-old father and grandfather, who has a history of mental health issues, when there was a “confrontation”.

“We’ve got a male down,” a female officer said over the police radio system.

“He’s been shot.”

They called for urgent help from paramedics but Mr Fackender, who had armed himself with a sword and was known to police, died at the scene.

Assistant Commissioner Geoff McKechnie defended the officers’ response, saying they felt threatened “to a significant degree”.

He said a number of tactical options were used before police resorted to their guns, but it’s unclear whether that included Tasers and pepper spray.

“There were other tactical options deployed that probably weren’t as effective as they possibly could have been,” Mr McKechnie told reporters in Bathurst on Thursday.

He said the officers were placed in a difficult situation.

“From what I’ve seen thus far, I believe their actions in many ways are commendable as well as what I would say justified,” he said.

One of Mr Fackender’s daughters, Karra, described her father as her “knight in shining armour” and said he taught her to be a better person.

“My hero … no matter what you were always there for me to pick me up even when you were feeling blue,” she wrote on Facebook.

Forensic police continue to search the scene of a fatal police shooting in View St, Kelso. Photo: ABC

Mr Fackender’s brother, Mark, also took to social media and described the circumstances of his death as “unfortunate”.

“Taken from us way too soon,” he wrote.

“Love you always my bro, gone but never forgotten.”

Sister Bronwyn Mangan said: “I will love you for eternity.”

Some of the officers were faring better than others after the incident, the assistant commissioner said.

“We mustn’t forget the family of the deceased man as well,” he said.

It’s the third fatal shooting by NSW police in six weeks.

Officers on August 6 shot a knife-wielding man at Grafton in northern NSW.

On July 26, officers shot dead 30-year-old Danukul Mokmool at Central Station in Sydney after he lunged at them with scissors.

Critical incident investigations are being held into each shooting.

-AAP