The victim, who has been named locally as Katrina Rainey and who was aged in her 50s, was found inside a burning car parked at her home between Knockloughrim and Gulladuff on Tuesday at around 5.40am.
Firefighters and the ambulance service attended the scene at Quarry Road and Ms Rainey was taken to hospital where she died later that evening.
Forensic teams remained at the scene yesterday as the investigation continued.
A 59-year-old man was arrested on suspicion of murder and was also treated in hospital for burn injuries.
On Thursday afternoon, police said they had been granted a 36 hour extension to question the suspect.
In 2002 Ms Rainey and her family faced tragedy when their six-year-old daughter Heather Louise Rainey died after an accident at the family farm.
Heather’s brother and sister, who are two of triplets, were both also injured when masonry fell from a silage pit.
Rev Glen Jordan, the former minister at Knocloughrim Presbyterian Church, described the Rainey’s as a “lovely family and totally supportive and kind and helpful”.
Mid Ulster DUP councillor Ann Forde said the local community was shocked.
“I knew the family, a lovely family and always very helpful and the community is stunned and devastated,” she said.
“And they will rally around and support the children and what can be done.”
Sinn Féin assembly member Emma Sheerin said the local community is in “shock”.
“My thoughts are with the women’s family and friends at this extremely difficult time,” she said.
“A police murder investigation is underway and I would call on anyone with any information which may help those inquiries to contact the PSNI.”
Detective Chief Inspector John Caldwell of the PSNI’s Major Investigation Team said: “At around 5.40am on Tuesday morning, October 12, police received a report of a car on fire outside a house on the road.
“Police and NIFRS attended the scene and a woman, aged in her 50s, who was in the car was taken to hospital for treatment.
“Sadly, despite the best efforts of hospital staff, she succumbed to her injuries and died in hospital this evening.
“A 59 year old man has been arrested on suspicion of murder. He has also been taken to hospital for treatment for burn injuries.
“My investigation is at a very early stage and I would appeal to anyone who was on the Quarry Road early this morning and who witnessed anything to contact Detectives on 101 quoting reference 227 12/10/21.”
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