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Aleisha Cherie Dawson (30) is charged with involvement after the murder allegedly committed by her partner John Kenneth Collins (37).
The body of 45-year-old Brent Andrew Bacon was found north of Waitati on February 18, the day after police and forensic staff descended on a recently abandoned Lock St flat in St Clair.
Dawson appeared in the High Court at Dunedin by audiovisual link yesterday, to make an application for electronically monitored bail.
At her first hearing before the court, bail was declined, but yesterday afternoon Justice David Gendall agreed to the more restrictive release.
Dawson wiped tears from her eyes when her application was approved.
The judge allowed her to live in Gisborne with relatives, on a 24-hour monitored curfew.
All submissions made by defence and prosecution, as well as the judge's reasons, are automatically suppressed.
Collins has so far been remanded in custody by consent and is yet to make a bail application.
A family spokeswoman previously told the Otago Daily Times Mr Bacon would be ''dearly missed''.
The accused pair were arrested in Rotorua on February 20.
Along with the more serious charge, Dawson also faces a charge of unlawfully taking a vehicle and two counts of attempting to use bank cards to obtain pecuniary advantage.
Collins is accused of the vehicle offence, too.
Police had sought information from the public on the movements of a dark blue 1995 Toyota Emina people mover which was driven from Dunedin to Picton early on February 5, and since found in Picton.
No-one else was being sought in relation to Mr Bacon's death, police confirmed.
Collins and Dawson will next appear in court in two weeks.
A trial has been scheduled for April 27 next year.
Dawson's bail conditions include:
- To live at a relative's Gisborne home, 24 hours a day.
- To leave the address only with approval of Probation.
- To attend legal or medical appointments only with approval of Probation.
- Not to possess or use firearms.
- To attend any counselling as directed by Probation.
- Not to possess, use or consume alcohol or non-prescription drugs.
- Not to contact any witnesses involved with the case.
- Not to contact Collins.