Major Collision Investigation Unit detectives are investigating the circumstances surrounding a fatal collision in Yarrawonga last night.
It is understood two people were involved in an altercation on Hargrave Court just after 8.30pm, before a woman attempted to intervene.
Police were told a man got into a car a short time later.
The car collided with the woman who had attempted to intervene as it left.
CPR was performed on the 46-year-old Yarrawonga woman, but she died at the scene.
Police located the vehicle in Shepparton and arrested a 26-year-old Tatura man about 2am.
He was taken into custody where he will be interviewed.
The investigation remains ongoing.
Anyone who witnessed the incident, has dashcam/CCTV footage or information is urged to contact Crime Stoppers on 1800 333 000 or submit a confidential report at www.crimestoppersvic.com.au