The body of a 31-year-old woman who went missing from Ballarat was extensively burnt and wrapped in a cloth when discovered by police yesterday, a Melbourne court has heard.

Key points: Police told the court Tamara Farrell was killed in her Ballarat home, then dumped 300 kilometres away

Police told the court Tamara Farrell was killed in her Ballarat home, then dumped 300 kilometres away The court heard police may need to map Shaye Kotiau's phone use due to where the body was found

The court heard police may need to map Shaye Kotiau's phone use due to where the body was found The Magistrate said it was clear mental impairment would be an issue in the case

Shaye Kotiau, 22, has faced the Melbourne Magistrates Court charged with the murder of Tamara Farrell.

Detectives uncovered human remains 300 kilometres away from Ballarat at Nambrok near Sale, after Mr Kotiau and his co-accused were arrested on Sunday evening in Altona.

The missing woman was last seen on Sunday morning and police allege she was killed at her home in the Ballarat suburb of Canadian.

Detective Dustin Shepherd told the court police would try and match the cloth they found her body wrapped in with a sheet missing from her home.

Ms Farrell was described as a very friendly and outgoing person. ( Twitter )

The accused's sister, Kaye Kotiau, 19, was charged with being an accessory to murder and cried as she was granted bail after an appearance in court in Morwell.

The court heard police may need to map the use of mobile phones and download text messages between the two accused as part of their investigation.

CCTV footage is also being examined.

Magistrate Charlie Rozencwajg said it was clear mental impairment would be an issue in the case.

Ballarat in 'shock and grief'

Ms Farrell's social media posts reveal she was passionate about opposing violence against women.

Earlier this month, she posted on Facebook: "Already there have been four women killed and we are only a month into the new year."

Ms Farrell's employer Airport Shuttlebus Ballarat said they were "shocked and devastated" by the reports of her death.

"We wish to express our deepest sympathies to her mother, family and friends," the company posted on Facebook.

"Tamara was an excellent employee who was always friendly and hardworking.

"We are all in shock and grief at losing a valued colleague and friend. She will be missed by all of us.

"May she rest in peace."

At a press conference in Ballarat, Deputy Mayor Jim Rinaldi said Ms Farrell had only moved to the regional city two weeks ago, though she had worked there for a number of months.

He said he knew Ms Farrell personally.

"[She was] very outgoing, very friendly. [She was] just a person with a great spirit and a wonderful attitude and very, very much loved by her workers," he said.

Superintendent Jenny Smith of Victoria Police expressed her condolences to the dead woman's family.

"I've just been here 12 months and this is the second death involving a woman in Ballarat over that period of time, and to me this just really highlights the issues about violence against women," she said.

Shaye Kotiau was remanded in custody after being charged with the murder. ( ABC News )

Charged 'vulnerable' in custody

Mr Kotiau has been remanded in custody and will face a Ballarat court at a later date.

His lawyer told the court it was his first time in custody and he was vulnerable due to his age.

She said he had no existing conditions that she knew of and requested he be assessed by Forensicare in custody.

His sister's application for bail was opposed by police prosecutors who told the court they feared she would not appear if granted bail and could contact the victim's family.

The court heard the victim was a long-time family friend.

Ms Kotiau's lawyer told the court she lived "some distance" apart from the victim's family and had no need to contact them.

She was granted bail on the condition that she live with her mother, report to police weekly and that she did not attempt to contact prosecution witnesses.

Police made the arrests after visiting an Altona home at Phair Court, near the Westona train station.

On Tuesday, forensic police officers searched the home and removed several items from the house.

A car, displaying P-plates, was taken away on a tow-truck.

Police also searched a roadside and nearby paddocks at Nambrok.