A US woman murdered her two-year-old daughter, dumped her body in the woods and spent the next month partying, getting tattoos - including one meaning "good life" - while telling her family the little girl was with babysitters, a jury has been told.



Casey Anthony, 25, is on trial in Florida, accused of murdering her daughter Caylee in June 2008.



She faces charges including first degree murder, aggravated child abuse and providing false information and could be executed if found guilty.



The court was told the girl's remains were found in a swampy field on December 11, wrapped in a Winnie The Pooh blanket, stuffed in garbage bags and with love heart patterned duct tape covering the nose and mouth area of the skull.



At various stages during the proceedings an emotional Anthony broke down in tears.



In his opening statement, Anthony's lawyer, Jose Baez, said Caylee drowned in the family's swimming pool on June 16, a month before the little girl was reported missing by her grandmother.



Mr Baez told the court that Anthony's father, George Anthony, found the body in the swimming pool and then planted evidence to implicate his daughter, in an effort to keep his history of sexual abuse against her a secret.



The defence said Anthony, who claims she was abused by both her father and brother as a child, lied about Caylee's death, just as she hid the past abuse.



"On June 16, 2008, after Caylee died, Casey did what she's been doing all her life, hiding her pain, going into that dark corner and pretending that she does not live in the situation that she's living in." ABC News reported Mr Baez saying.



"It all began when Casey was eight-years-old and her father came into her room and began to touch her inappropriately and it escalated."



George Anthony denied the allegations of abuse and told the jury the first time he heard about Caylee's drowning was in court.



"When I heard that today, it hurt really bad.



"If I would have known something happened to Caylee, I wouldn't be here today."



"I would have done everything humanly possible to save my granddaughter if what was stated prior really happened."



Mr Baez said George Anthony pointed police to missing gas cans - which had traces of the same duct tape found on the little girl's remains - in order to direct the investigation towards his daughter.



But prosecutor Linda Drane Burdick said Anthony's parents were completely unaware of their granddaughter's death because Anthony told them Caylee was with babysitters, nannies or visiting Universal Studios.



Ms Burdick said in the 31 days before Caylee was reported missing Anthony went to several nightclubs and got two tattoos, including one saying "Bella Vita", meaning "good life".



She said security cameras at Orlando shopping centres and stores placed Anthony in town without her daughter. Friends photographed her the week after her daughter's disappearance participating in a "hot body contest" at a nightclub, Ms Burdick said.



"Casey Anthony had access to all the pieces of evidence in this case...no one else lied to their friends, to their family, to investigators, no one else benefited from the death of Caylee Marie Anthony," Ms Burdick said.



"Caylee's death allowed Casey Anthony to live the good life at least for those 31 days."



When Cindy Anthony finally demanded to see her granddaughter, Anthony told her she had been kidnapped by a babysitter, Ms Burdick said.



George Anthony said he drove his daughter's car to his house, where Cindy Anthony took one smell and said: "Jesus, what died?", the prosecution said.



The smell of the car prompted the grandparents to call police.



"I can't find my granddaughter. There's something wrong. I found my daughter's car today and it smelled like there's been a dead body in the damn car," Cindy Anthony said in the call to police in July.



The prosecution said forensic tests found signs of chloroform and decomposition in the car, and pieces of Caylee's hair were also found.



The court was told an examination of the family computer showed someone had searched Google for information about chloroform and strangulation four months before the little girl went missing.



An autopsy has never been able to determine a cause of death.



The case has made headlines across the US and the court was packed with members of the public on the first day.



The trial continues.



-smh.com.au with AP and Reuters