UPDATE: Police officers continue to investigate how a Wodonga woman, 43, died on Saturday night.
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A 21-year-old Wodonga woman was taken into custody and is assisting police with their inquiries.
One neighbour told The Border Mail he didn't know what happened.
"I didn't hear anything and then came outside to put the bins out and saw the police tape," he said.
"I've been here for a year and they've been here for most of that time."
He said 10 people or more lived in the four-bedroom house.
"They would sit on the chair outside the house every day," he said.
Two police cars were parked by the Peeler Street house throughout Sunday morning.
Another neighbour said he would often see the group outside, with multiple children "riding skateboards and just being kids".
A skateboard and damaged chair were among the items at the scene.
The Border Mail understands there was some sort of incident on the street in the lead-up to the woman's death.
The body was located in the backyard.
The Homicide Squad was in Wodonga on Saturday night investigating.
EARLIER: Homicide Squad detectives are investigating the death of a woman in Wodonga on Saturday night.
Victoria Police said emergency services were called to Peeler Street where a Wodonga woman, 43, was found dead just after 8.30pm.
"The exact circumstances surrounding the woman's death are yet to be determined at this stage," police said.
A 21-year-old Wodonga woman was taken into custody and is assisting police with their inquiries.
The home, which is in a residential street near Wodonga WAVES, was taped off on Sunday morning, with police officers keeping watch from their vehicle parked outside.
A tattered chair stood on the nature strip, with another chair by the front door.
A police spokeswoman said Homicide Squad detectives had been contacted after the incident and were now in Wodonga investigating.
Anyone with information is urged to contact Crime Stoppers on 1800 333 000 or submit a confidential report online via crimestoppersvic.com.au.
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