Police say the woman was found Monday after officers were called to an apartment building, where they shot a man who was brandishing a knife.
The victim has been identified as 63-year-old Yin Nor Hsao, and the 19-month-old granddaughter she'd been babysitting is now in hospital.
Police have arrested a suspect, who is in a hospital under guard, and they're recommending charges of murder and attempted murder.
The suspect's name won't be released until the Crown makes a decision on whether to approve charges, but police say he has a connection with the child.
The province's Independent Investigations Office, which handles cases involving police, is looking into the circumstances of the shooting.