Police were called to the property in Old Coach Road, East Kilbride, South Lanarkshire, at around 10.45pm on Wednesday following reports that the woman was injured.
The victim, Marie McCracken, was pronounced dead at the scene.
The mum of three, who lived nearby, had worked as a senior service assistant for the WRVS at Hairmyres Hospital in the town for the past four years.
Police today confirmed a 61-year-old woman has been arrested over the death.
She is expected to appear at Hamilton Sheriff Court on Monday.
l In later editions of last night's paper we wrongly reported the victim's name after she had been identified locally.