A woman has been charged with murder after police discovered a body inside a home in the Hunter Valley region.

The body of a 60-year-old woman was found inside a unit on Sydney Street in Muswellbrook at 8:30pm on October 30 while officers were conducting a welfare check.

Police established a strike force to investigate the death and indicated that the discovery of her body was linked to an unusual interaction with another woman earlier that day.

Emergency services were first alerted to the 52-year-old woman after they were called to her home, also on Sydney Street, over a concern for her welfare at 7:20am that morning.

Officers spoke to her before leaving the property a short time later, however they were called out again to a licensed club on the street after hearing reports she was behaving in an erratic manner.

After speaking to officers again, she was arrested outside the club before being taken to the Mater Hospital under police guard for an assessment.

She was detained in the mental health facility until Wednesday when she was discharged and escorted to Waratah Police Station where she was charged with murder, stalk/intimidate intending to cause fear of physical harm, and destroying property.

The women are believed to be known to each other and police are investigating the relationship between them, Acting Assistant Commissioner Scott Tanner told reporters last week.

The 52-year-old was refused bail to appear in Newcastle Local Court on Thursday.

The response to the mental health episode and the woman’s death has been declared a critical incident, with investigations ongoing into police actions on the day of the gruesome discovery.

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