Vicki Lee Warrington (48) was found dead by police inside a Brighton Rd property after they were called to the address about 6.30pm on Friday. Another man was found injured outside the property.
A 22 year old man has been arrested in connection with the incident and was due to appear in the Dunedin District Court today.
He will appear on a further charge of wounding with intent to cause grievous bodily harm in relation to the other injured victim, whose injuries are not life threatening. Police would not say who alerted them to the incident.
Police and CIB detectives cordoned off part of Brighton Rd between Vulcan and Viscount Rds as they carried out investigations over the weekend.
The cordon had since been removed but the immediate scene was still secured, a police spokesman said. When asked whether a stabbing had occurred or a weapon had been recovered, the spokesman said police would be making no further comment.
No other details relating to the offender, including his relationship to the victims, were available.
Brighton Rd residents spoken to by the Otago Daily Times yesterday said they did not know the victim or anyone who lived in the house.
The incident had been ''a bit close to home'' for resident Damian Burden (35), who lived a few houses down with his wife and three children.
''It's all pretty scary. We got home about 5 o'clock on Friday and didn't realise anything until later on when we looked out the curtains and saw all the flashing lights.
''It's a bit close to home because it's a nice wee community out here and you don't expect that thing to be happening nice and close.''
Police had spoken to the family and assured them they were safe, he said.
Another nearby resident, who did not wish to be named, said she did not see or hear anything at the time of the incident.
She and her partner found out through social media and had had no police contact.
She said she was not alarmed by the incident or the extensive police cordon in place.
''It's a pretty good neighbourhood. It can happen in any neighbourhood. We're not too worried.''
Another resident said the scene on his street yesterday was ''a bit disconcerting'' but police had kept them informed and he was not overly worried.