Port Fairy residents were "shocked and horrified" after the alleged fatal stabbing of a man in one of the town's caravan parks early Friday.
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Warrnambool police Acting Inspector Steve Thompson said police were notified about 2.45am after emergency services were called to the Catalina Caravan Park on the west side of Port Fairy.
On arrival police found a woman trying to resuscitate a 35-year-old man. Police officers and paramedics then worked on the man for some time but he was unable to be revived.
It's understood the man had suffered what appeared to be a wound to his back.
A 35-year-old woman was late on Friday charged with murder. She appeared before a bail justice and was remanded in custody until a court appearance on Monday.
Earlier, Warrnambool crime investigation unit detectives established a crime scene at the caravan park and conducted inquiries with residents and staff.
Warrnambool-based crime scene services and Melbourne-based forensic services gathered evidence throughout the day.
Acting Inspector Thompson thanked members of the public for their assistance and reassured the community there were no on-going community risks.
It's understood the man and woman were known to each other. She is originally from Mildura but has family connections in the south-west.
The woman is understood to have been involved in a serious car accident west of Port Fairy in the early hours of Saturday, August 24.
She had to be put on life support in a critical condition after suffering head and pelvic injuries in a single-vehicle accident about 3am. The woman was only released from hospital after recovering from her injuries on Thursday.
One person from the caravan park said he did not hear anything. The death shocked residents throughout the town.
"I hope this doesn't affect tourism over the school holidays," one, who did not want to be named, said.
"This is the big school holiday period for the town so I hope it's all good. Hopefully people won't remember this incident for too long."
Another business owner said she was "shocked and horrified". "It's dreadful," she said.