Reports from Iran's southeastern Sistan and Baluchistan Province say local people have gathered in front of the governor's office in the provincial capital Zahedan after police shot dead a young man.
Police has confirmed the man's death, adding that the number plate on his car was manipulated. The man was being chased by the police, they said.
Police officers told reporters that the man was wounded and died at the hospital.
Local witnesses say the police were chasing the man, Mousa Shahbakhsh, on charges of not having a driving license. According to the officers, he did not stop at the orders of the police and they shot him.
Reports from the city say some 30 people of dozens gathered in protest to the incident have been arrested.
Based on videos circulating on social media, angry protesters set fire to a police vehicle.
The region is economically disadvantaged and has a substantial Baluchi population of Sunni Muslims who have a tense relationship with Iran's Shiite authorities.