Deceased Thangching Marma, 45, was a resident of Trideba Para area under Fanshiakhali union in the upazila.
Sources said Alau Marma hacked Thangching to death over previous enmity, leaving her dead on the spot.
She went into hiding soon after the incident.
Being informed, police recovered the body and sent it to a hospital morgue, said Lama Police Station officer in-charge Mohammad Mizanur Rahman.
However, police in a drive detained Alau Marma in this connection, he added.
BA/MUS