The 46-year-old sister of MLA Bess Price has died after being involved in an altercation last night, and police say a woman has been taken into custody over the death.

Duty Superintendent Helen Braam said the incident happened at Warlpiri Camp just before midnight last night, Tuesday.

"It is believed that alcohol played a factor in this death," Duty Supt Braam said.

A crime scene has been established and Major Crime Detectives are assisting local Detectives with the investigation.

One of the stabbed woman's nieces said she had come into town yesterday from Lajamanu to pick her aunt up to take her home.

"I came to take my aunty home," Anne Wayne, 34, said.

"Then this happened. It's so sad."

Ms Wayne said the family was "traumatised" and "very upset".

"It is terrible," she said.

Ms Wayne said the offender - a woman from Western Australia - was unknown to the family.

"She's from Fitzroy Crossing, she's not from here," she said.

For years the victim's sister, Member for Stuart Bess Nungarrayi Price has been arguing passionately for the rights of Indigenous women to live without fear from violence and abuse.

In a heartfelt statement she called on Territorians to end violence.

"Today I woke to a phone call telling me my sister had been killed. I am devastated.

"Violence against any person should not be tolerated in our society regardless of age, race, culture, wealth and geography.

"I have been a victim and also witnessed violence in our communities.  We, as a society, must stop this cycle of violence.

"We all know the challenges faced here in the Northern Territory with 63 per cent of assault victims being women and 59 per cent of all assault offences associated with domestic violence.

"Despite the fact that Aboriginal women in the NT make up only 0.3 per cent of all Australian women, they account for 14 per cent of all the female hospitalisations for assault in the entire country.

"Violence of any type is an issue that we as a community cannot remain silent about.  It is a conversation we must have, for the sake of our families, friends and colleagues.

"For those victims who are unable to get help, we must support them.  For the voiceless, we must speak for them.  And for those who perpetrate violence, we must collectively condemn their behaviour.

"I want my fellow Indigenous Territorians to stand up and ‘no more’. Change will only come if, and when, we all work together.

"My sister was allegedly killed in an alcohol fuelled incident in a Katherine town camp overnight.

"This is why I support taking a hard line on tackling alcohol abuse through a suite of programs including Alcohol Mandatory Treatment, Alcohol Protection Orders and Temporary Beat Locations.

"These policies are starting to have an effect, but there is more work to do.  

"We would all prefer these measures weren’t necessary at all but we are committed to doing whatever it takes to break the cycle of alcohol misuse and violence in our community.

"As I have said many times, protecting women and children from violence is my top priority and what happened to my sister has happened to far too many women in the Northern Territory. 

"I will work with my Cabinet colleagues to introduce tough anti-violence education programs in our schools and homes to break this cycle.

"No family should have to endure the trauma of a senseless death.

"As long as I am in Parliament, I won’t stop working to turn this situation around and I ask you all to work with me to achieve this."

In March this year - in her role as Minister for Women's Policies - Mrs Price joined the Chair of the Foundation to Prevent Violence against Women and their Children, Natasha Stott Despoja, to announce the Northern Territory’s commitment to the foundation. 

“I am proud to say the Northern Territory is the first jurisdiction to join the foundation since it was established by the Commonwealth and Victorian governments in July 2013,” Mrs Price said. 

“Violence cuts across the boundaries of age, race, culture, wealth and geography and for countless children, their childhood can be described with one word; fear. 

“The sad reality is that violence has serious and long-lasting consequences that compromises development and is linked with psychological and emotional issues such as anxiety, trauma and insecurity. 

“For those women who are unable to find assistance, we must support them. For those children who remain helpless and voiceless, we must speak for them. 

“The Giles Government will not tolerate violence, and our commitment to the foundation is a demonstration of this government’s strong focus on reducing the unacceptably high rates of domestic and family violence in the Territory.” 

“I look forward to working with ... the foundation to get real results in preventing violence against women and their children," Mrs Price said.

In 2011 Mrs Price gave a passionate account of Indigenous women's lives in communities.

"Women out there don't know where the line is," she said.

"They try to keep their family together, like all of us women know how to do, and it's very difficult when you're brought up in an environment where men are in control, and they control everything that you do.

"I managed to break away from that and I've been able to see from where I sit how difficult it is for the women to break away from that cycle, that helpless cycle that they live in.

"I have young relatives as well who don't know how to get out of that cycle and who keep going back because they think it's normal to be beaten up, and I'm talking about young girls who don't know our culture, don't live that culture, and that's the culture that they live with their husbands who beat them up, that's all they know."

Member for Katherine, Willem Westra van Holthe, said the death was "senseless and tragic".

"Especially as it's caused by alcohol-fuelled violence it really cuts to the heart of the Katherine community," he said.

Mr Westra van Holthe said he would like to pass on his sincere condolences to Mrs Price on behalf of the people of Katherine. 

This morning, Thursday, police said a 31 year old woman has been charged with murder in relation to the death of Mrs Price's sister.

"Enquiries surrounding the circumstances of the woman’s death are continuing," police said in a statement. 

The offender has been remanded in custody and will appear in Katherine Magistrates Court today, 1 May 2014.