A woman has been charged with the murder of her neighbour whose body was discovered on a nature strip in a suburb outside of Melbourne.

The body of 44-year-old Rachel Tyquin, a mother and fitness instructor, was found in Balmoral Circuit in Sunbury about 7.30am yesterday, following a long-running neighbourhood dispute over parking.

She had allegedly been stabbed to death and was found just 250 metres from her home.

Rachel Tyquin. (Image: Facebook)

A 53-year-old woman drove herself to a local police station just hours later. The car she arrived in is being processed by forensic investigators.

She was charged with Ms Tyquin's murder and will appear before Melbourne Magistrates' Court on Monday.

An aerial shot of the crime scene in Balmoral Circuit. (9NEWS)