The couple planned to marry next month.
Sources told The Star Tribune two officers in one squad auto, responding to the 911 call, pulled into the alley around 11.30pm Saturday (local time).
No weapon was found at the scene and the investigation is expected to include a focus on why the officers' bodycams were not recording.
The Minnesota Department of Public Safety Bureau of Criminal Apprehension, which is investigating the incident along with the MPD, said that the officers' body cameras and the squad camera were not on at the time of the shooting. The police officers did not have their body cameras turned on. Some officers are known to deliberatly turn their cameras off so that they can protect themselves in the event of a shooting.It's also now known why the police officers did not use Taser guns instead of guns with bullets. Investigators are looking for any video of the shooting of Justine.
Minneapolis police confirmed the incident in a statement.
Her stepson said Damond, an Australian in her 40s, was "passionate" and his "best friend". "I call on the BCA.to share as much information as they can as quickly as they possibly can".
Minneapolis mayor Betsy Hodges wants to know why the officers' body cameras were switched off. "Questions I hope and anticipate will be answered in the next few days".
"Like you, I have a lot of questions", she said.
Three sources with knowledge of the incident said that when they arrived, the officers pulled around back and were immediately confronted by Damond, who was in her pajamas.
Australian woman shot dead by police in US
Justine completed her bachelor's degree in veterinary science from the University of Sydney, Australia, according to her LinkedIn profile, the Star Tribune reported.
Justine Damond, previously known as Justine Ruszczyk, was shot through the door of a squad vehicle after she had gone outside in her pyjamas, it is claimed.
Minneapolis police said the two officers who were involved in the shooting were sent on paid administrative leave, standard protocol and procedure after such an incident.
He said she called the police when she heard a sound in the alley. I'm so done with all this violence.
"Next thing I know, they take my best friend's life", he said. "My heart goes out to everyone in the community, especially the family of the woman that was shot". She also lives in the Fulton area.
Justine Ruzczyk with her fiance Don Damond and his son. He was away on a business trip when the shooting occurred.
Justine, whose maiden name is Ruszczyk, used the name Damond even though the couple were not yet married. Ruszczyk was wearing her pajamas when the woman from Sydney, Australia, was killed.
Ms Damond is believed to have been living in the USA for at least the past three years. "Now a force even more powerful than before, may your attractive light shine through the darkness", they wrote in a post.