A MAN charged with murdering Quambatook "dear friend and champion" Merril Kelly has appeared in court.

Brian Barnes, 67, faced Bendigo Magistrates' Court yesterday for a filing hearing after being charged over the Tuesday incident.

Mr Barnes was arrested without incident in the Welshmans Reef area on Wednesday.

Ms Kelly's body was discovered by authorities near the old Quambatook cemetery on Tuesday morning after firefighters were called to a grassfire near Cemetery Road.

Mr Barnes was remanded in custody to reappear in court in April for a committal mention.

His lawyer, Paul Kidd, told the court it was Mr Barnes' first time in custody, and that he required blood-pressure medication.

Mr Kidd said his client also didn't understand the allegations made against him.

The court heard Mr Barnes was deemed unfit for an interview by police on Wednesday.

"I think he is entitled to know how it is the police say he is the offender," Mr Kidd told the court.

"And at the moment, that information is not available."

The court was yet to hear an application by police to use forensic samples taken from Mr Barnes.

Mr Barnes' lawyer told the court police had not provided enough evidence to justify the use of such samples. The court was to make a decision next week.

A police prosecutor said detectives needed 24 weeks to compile the hand-up brief of evidence against Mr Barnes, which was refused by magistrate Jarrod Williams.

He ordered the prosecution hand over its brief before March 19.

Ms Kelly was secretary of the Quambatook Community Development Association, secretary and treasurer of Quambatook Amity Club, and volunteer at the local swimming pool.

The grandmother was also a retired board chair and member of Northern District Community Health for close to three decades.

Locals were too distraught to speak about the loss, instead referring the media to statements released by Gannawarra Council.

NDCH chief executive Penny Wilkinson said the organisation was "deeply shocked and saddened by the tragic loss of a beloved life member, community leader and friend".

"Our deepest condolences are with the family, as they are also with the people of Quambatook," Ms Wilkinson said in a statement.

"Her loss has shaken the community.

"Right now our focus is to support the community come together and mourn the loss of a dear friend and champion.

"Our organisation will work with others across the region to ensure that the community has access to the right care (at) the right time over the coming weeks and months."

The council said it was saddened by the tragedy.

"Any loss of life in small rural communities such as Quambatook has a wider impact on the area," the council statement said.

"Our thoughts are with family members and friends of all affected by this incident.

"Council and local health services including Northern District Community Health and Kerang District Health are collaborating to ensure we have a co-ordinated response for urgent trauma counselling for those that need it."

Community activities and shops closed for the week as the town of less than 300 people grappled with the tragedy.

Quambatook Lions Club and Quambatook Community Development Association cancelled Sunday’s Australia Day celebrations.

"The two groups will assess in the coming weeks how to come together as a community to recognise residents who help make our town special," organisers said.

The bowling club also opened its doors on Wednesday night for "anyone in the community who would like to just be with other people".

Resident Chelle Espagne praised the response of emergency services.

"The quick response of the Victoria Police and the swiftness and professionalism you all showed as you dealt with this tragic event was unparalleled," she said.

"Your actions have brought a sense of hope and justice to a grieving community, and for that, we are immensely thankful."

Former resident Mick O'Connor said his thoughts were with the tiny town.

"I've walked a lot of miles across the countryside over the last eight years, and I've never been welcomed as much as the day I walked into your town," he said.

"Tight-knit communities like yours are few and far between.

"I have no doubt that you'll all come together to deal with this terrible tragedy."

A number of qualified counsellors were preparing to travel to Quambatook to support locals.

Anyone with information is urged to contact Crime Stoppers on 1800 333 000.