Officer Darrin Reed was fatally shot after responding to a disturbance at a restaurant Wednesday in the town of about 10,000 people in the Apache-Sitgreaves National Forest.
Authorities say the gunman was later killed during a barricade situation at a rental cabin in the nearby community of Pinetop-Lakeside.
The 50-year-old Reed had been with Show Low police since 2006 and was scheduled to retire in February.
He's survived by a wife and two children.
The Maricopa County Sheriff's Office says its honor guard attended the funeral and gave Reed's widow a $25,000 check from the agency's memorial fund to help with any financial needs of the officer's family.