Two men from Sebastopol have been arrested after the body of a woman was found in Scarsdale last week.
Just before 10 am on Friday, emergency services were called to reports of a car fire in bushland near State Forest Road.
The remains of a 23-year-old Clunes woman were found inside the car.
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A 22-year-old man has now been released, while a 21-year-old man remains in custody, with police interviews continuing.
Detectives believe the three involved were known to each other.
