The accident happened at about 7 p.m. at Canal Street and Forsyth Street.
A driver of a minivan lost control of his vehicle while parallel parking, police say.
The minivan jumped a curb and hit a fruit stand. The driver, a 70-year-old man, remained at the scene.
He was arrested and charged with seven counts each of failure to yield and failure to exercise due care.
The person killed is a man who has not yet been identified by police.
The injured pedestrians were taken to Bellevue Hospital. Two people are in critical but stable condition. Two are in serious but stable condition.
Two people inside the minivan, including the driver, refused medical attention.
Mayor Bill de Blasio released a statement about the crash on social media:
Terrible car crash on Canal St has killed 1 pedestrian and injured 6 more. A full NYPD investigation is underway. We cannot accept loss of life on our streets as inevitable. We will continue working harder every day to reach #VisionZero.— Mayor Bill de Blasio (@NYCMayor) November 27, 2018
It is not yet clear what caused the driver to lose control.