Police believe alcohol and an ''incident inside a vehicle'' may have led to a crash in Crace which killed one person and has left another fighting for their life.
Six people were injured in the accident on Gundaroo Drive when a green Holden Commodore veered into the opposite lane, colliding with a Toyota Yaris.
The front passenger of the Commodore, a 29-year-old Ngunnawal man, died at Canberra Hospital shortly after the collision, which occurred at 1pm on Sunday.
The driver of the Commodore was listed yesterday in a critical condition, while another passenger was listed in a stable condition.
Two others have been released after sustaining minor injuries.
Police said the Commodore drifted left before veering sharply into the other lane and colliding with the other car. Acting Superintendent Daryl Neit said, ''We understand the driver of the Yaris only had moments to impact''.
The Canberra Times understands police are investigating the possibility someone in the Commodore may have activated the car's handbrake moments before the collision.
Police said they would examine footage of the collision taken by an ACTION bus behind one of the vehicles at the time of the accident.
''At this stage we are still early in our inquiries as to why the car lost control and commenced to go sideways, we understand there was some incident inside the vehicle,'' Superintendent Neit said.
''We understand that alcohol may have played a contributing factor in this collision but it is yet to be confirmed by the analysts.''
Police said statements from witnesses and police investigations indicated the presence of alcohol.
The crash death takes the ACT road toll to eight for this year.