Police were called to the scene, across from the fresh market in Baan Don, in Moo 4, Thepkrasattri, in Thalang, just after 8pm last night.
The officers along with Kusoldharm rescue workers arrived to find Kittisak Chukun, 41, from Hat Yai in Songkhla, unconscious and unresponsive on the ground.
He had been stabbed twice, and was confirmed dead on arrival by doctors at Thalang Hospital.
Police through questioning witnesses and checking CCTV tracked the suspect, who was seen fleeing on his Honda motorbike, to a house in Moo 5, Rassada, where they arrested Pongphan Piowpong, 36, registered as living in Phuket.
The two men were known to locals and were sitting in front of the shop, which was closed at the time, when they started arguing.
The argument turned lethal when Pongphan stabbed Kittsak and fled.
At 10am today, officers led by Thalang Police Deputy Superintended Lt Col Anukul Nuket brought Pongphan to the scene where he threw the knife used in the stabbing into the canal at a bridge near Baan Ya in Thalang.
Police reported that Phongphan had confessed to the stabbing and said that he was drunk at the time.
Pongphan has been charged with murder and carrying a weapon (a knife) in a public place, and may yet be charged with attempting to conceal evidence.
Police have yet to reveal exactly what the argument was over.