The incident occurred near Repallewada village under Tandur mandal yesterday.
The woman, G Sharada, was waiting for a bus on the roadside when the driver of SP Sunpreet Singh's official vehicle lost control while trying to avert a collision with a car and hit her, Tandur Circle Inspector Janardhan Reddy.
The elderly woman died on the spot, he said, adding the SP was in the vehicle when the mishap took place.
A case under IPC section 304A (causing death by negligence) was registered against the driver, who has been detained, Reddy added.
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