A man has been charged over the murder of young mother Karlie Pearce-Stevenson

Murder victims Karlie Pearce-Stevenson (r) and her daughter Khandalyce.

New South Wales police have arrested a man over the murder of a 20-year-old Alice Springs woman, Karlie Pearce-Stevenson, whose body was found in Belangalo State Forest in NSW in 2010.

Detectives arrested a 41-year-old man at Cessnock Police Station yesterday afternoon.

Police charged him with Pearce-Stevenson’s alleged murder last night. He was refused bail and will appear in Maitland Local Court today.

Police in NSW and South Australia have been investigating both her death and the murder of her two-year-old daughter, Khandalyce, whose remains were found 1100km away in a suitcase by the side of a highway near Wynarka, South Australia, in July.

DNA testing revealed they were related earlier this month and police announced the tragic news last week.

Pearce-Stevenson and her daughter were last seen in November 2008, on the Stuart Highway near Coober Pedy.

On Tuesday, detectives revealed that someone had impersonated the mother for a number of years following her death to steal money and convince her family she was still alive, also using her bank account more than 1200 times between November 2008 and March 2012 from locations in South Australia, Northern Territory and the ACT. More than $90,000 was taken.

Police say inquiries into the murder of Khandalyce are continuing.

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