Sergeant John Bruschi said officers located the victim, 64-year-old Oroville resident Roger Dale Miller.
Miller had facial injuries and a laceration to his neck.
He was pronounced deceased at the scene and determined to be the victim of homicide.
Bruschi said officers located a secondary crime scene at a transient camp located off of Feather River Boulevard between the Super 8 Motel and Motel 6.
A large perimeter was set up and the homicide scene was processed by Department of Justice Crime Scene Laboratory.
Officers located and interviewed witnesses throughout the morning and identified the suspect as 40-year-old Oroville transient Victor Albert Caldera.
At 12:30 p.m. Bruschi said officers located and detained Caldera at his Motel 6 room. Inside the room officers said they located additional evidence linking Caldera to the homicide and he was transported back to OPD for an interview.
Caldera was later booked into Butte County Jail on an open count of murder.
Police are asking any witnesses or anyone with information about the homicide to contact the Oroville Police Department Investigations unit, 538-2460 or Oroville Police Dispatch, 538-2448.