A 36-year-old woman is dead and a 39-year-old is in a stable condition at Royal Darwin Hospital after a stabbing in a suburb of Palmerston on Friday night.
A 20-year-old man has been arrested and is assisting police with enquiries.
NT Police said Major Crime detectives were investigating the incident, which took place in Moulden about midnight on Friday.
"Upon arrival, police located two women with injuries," NT Police said in a statement.
"Sadly, the 36-year-old woman could not be revived.
"The second female, aged 39, was conveyed to Royal Darwin Hospital by St John Ambulance with what is believed to be non-life-threatening injuries.
A NT Health spokeswoman confirmed the 39-year-old woman was in stable condition on Saturday.
Rob Chandler, who lives in a house opposite the units where the incident took place, said there was often a lot of noise coming from the house.
"We've had a few scary moments," he said.
"There's always a lot of commotion here, but you're sort of just willing to block it out — you see a lot of fighting in the street, that sort of thing.
"We've had bottles thrown over the fence at the dog."
Mr Chandler said he was surprised by the news someone had died in his street, though there had been a number of violent incidents in the area recently.
Anyone who may have witnessed the incident is urged to contact police on 131444.
