The suspect, a 39-year old farmer, was driving a small truck on Tuesday evening when he failed to notice two women crossing the road because he was playing the popular augmented reality game, the police said.
One of the victims, a woman in her early 70s, died of a spinal injury after being hit by the truck. The other woman has been hospitalized with a severe injury.
The police said the driver told them he was not paying attention and had been distracted by Pokemon Go. It was the first case of a death in Japan resulting from someone playing the game, they added.
Pokemon Go is based on the 1990s game. But it adds to the fun with augmented reality technology, which allows players to explore their neighborhoods, and to superimpose virtual creatures on the real world.
Various governments have voiced concerns about the game, warning players to steer clear of sensitive areas and military bases.