Kwanokuthula police have opened a murder docket following the death of a 23-year-old woman near the taxi rank at Sishuba Street, Kwanokuthula, Plettenberg Bay.
Police sergeant Chris Spies says the incident happened shortly after midnight on New Year's day.
He says the woman was walking with friends when she fell to the ground with blood all over her face.
She was taken to the Knysna Provincial Hospital for medical attention, but was declared dead on arrival.
Preliminary investigations revealed that she sustained a gunshot wound to her head at the time of her death.
Sergeant Spies says all the circumstances surrounding the incident are under investigation and all leads are being followed up.
