Lincolnshire Police said officers were called to the property in Leicester Street, Sleaford, at around 10.40am yesterday after reports that the body of a 21-year-old woman had been found.
Officers attended the scene and a 21-year-old local woman was arrested a short time later on suspicion of assisting suicide.
A police spokesman said she was released on police bail until February 17 pending further inquiries.
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