Woman, 41, charged with murder over death of boy, 8, on Mornington Peninsula

"It is believed both parties are known to each other," police said in a statement.

Most houses in the street are holiday homes and empty. It’s believed the property where the boy died was due to be sold at auction this weekend.

One neighbour, who did not wish to be named, said a couple lived at the house with a young boy.

She said she did not know the family well, but had not heard of any problems or noises.

"We saw each other a bit, we're not really friends," she said.

"The police have already been around. I feel sick."

Other neighbours said they often saw a woman at the property and a young boy playing in the front yard.

They said the family had been living at the rented property, which is listed for sale, only for a year or so.

Royston Churchill, who has lived on Alma Street for 47 years, said he was shocked at the news.  

“It was a big shock, because we’ve never had anything like that around here,” he said.

Mauro Salce, who owns Peninsula Classic Holden Parts on Alma Street, said it was mostly a quiet area, with lots of holiday homes.

"I’m really surprised," he said. "It’s a really good street."

Locals have laid flowers outside the home to pay their respects.

One mother and daughter who didn’t know the family said they wanted to remember “a beautiful eight-year-old child”.

Tootgarook is a beachside suburb between Rosebud and Rye.

Anyone with information is urged to contact Crime Stoppers on 1800 333 000.