Police said passers-by saw an argument which could have led to a woman having her throat slashed in Wheatley yesterday.
Mother-of-one Debbie Smith, 47, died after she was cut with what detectives described as a sharp object following a Bank Holiday Monday row in Bell Lane.
Witnesses called the emergency services, but Ms Smith was pronounced dead on arrival at the John Radcliffe Hospital.
A murder investigation is now under way.
A 49-year-old man is currently in a stable condition in hospital after suffering throat injuries.
He has been named locally as Russell Yeates.
No arrests have been made, but police said they were not looking for anyone else in connection with the incident.
Forensic officers are expected to examine the property and surrounding area for at least two days as evidence is gathered.
Det Insp Colin Seaton, who is leading the murder investigation, said: "It is clearly a shocking incident, but I would like to assure residents it was a isolated incident.
"We are not looking for anyone else in connection with this incident but I appeal for any other witnesses who saw what happened to come forward."
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