She has been named locally as Rebecca Browne from Galliagh.
The incident happened at 3.15 am on Sunday, May 21, at Ludden, not far from Buncrana.
No one else was injured in the collision which happened near the Applegreen Service Station.
It is understood Ms Browne was in Buncrana for the weekend with a friend.
She worked at Sage Hair and Beauty based on the Spencer Road in Derry.
She was described as a genuine person who was full of life and always up for having a laugh.
Father Michael McCaughey from the Parish of the Three Patrons in Derry visited Rebecca’s family in their home on Sunday evening.
“I met Rebecca’s mother, father, brother and the wider family circle,” he said.
“They are heartbroken and acknowledged just how much Rebecca was loved.”
Local County Councillor Jack Murray said the town was in shock after waking up to news of the tragedy.
He said “The whole town is in shock after yet another tragedy in the area.
“It was terrible to wake up to the news that somebody had lost their life but when you heard it was a young woman and in such tragic circumstances then that makes it even more tragic.
“The thoughts and prayers of the entire community are with this young woman and her family.
“You also have to think of whoever was driving the car and what they are going through. The entire incident is just so tragic.”
Friends of the tragic woman have been leaving messages of sympathy on their social media pages.Allie McGarrigle wrote: “Always giving us a laugh I don’t know how I’ll do it without you becca…
“Please give us all the strength in these coming days and forever. My hardest goodbye”
Erin Maguire wrote: “My gorgeous best friend Braon Leah Rebecca I don’t honestly know what I’m going to do without you or how I’m going to get through this my heart is completely broken I’ve lost my right arm.”
Ella Townsend “My hearts sore, love you so much. Our angel”
A Garda spokesperson said the collision has been referred to the Garda Síochána Ombudsman Commission (GSCO) for investigation.
Anyone with information about the incident is asked to contact Buncrana Garda station on 074 932 0540, the Garda Confidential Line on 1800 666 111 or any Garda station.
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