Thames Valley Police officers were called at about 3.45pm on Saturday afternoon, following reports of an assault in Wood White Drive at the junction of Peacock Lane.
Officers attended the scene where a 54-year-old woman had sustained stab wounds. Sadly, she was pronounced dead at the scene.
A 14-year-old boy was also injured as a result of the incident. He sustained non-life threatening injuries and was taken to hospital where he remains.
A 32-year-old man was arrested at the scene on suspicion of murder. He is in police custody at this time.
Next of kin have now been informed and are being supported by specially trained officers.
Head of the Major Crime Unit, Detective Superintendent Ian Hunter: said: "I understand that this incident will cause concern in the community, but I would like to reassure people that we believe it to be an isolated incident.
"We have launched a full investigation and have made an arrest.
"We currently have a number of police officers at the scene carrying out enquiries, and I would encourage anyone with any questions to feel free to approach them.
"I would appeal to any witnesses or anyone with information about this incident, no matter how insignificant you think it could be, I would ask that you call the Thames Valley Police non-emergency number on 101 and quote reference number 969 (7/7)."