Newstalk ZB reported the police officer found the woman covered in blood and that she died on the way to hospital.
The woman suffered "extensive injuries" in the attack, which officers at the scene described as "ghastly".
A large area - including the school and its playing fields - has been cordoned off. Several police cars and an ambulance remain in the restricted area.
Detective Senior Sergeant Greg Turner said the woman had been out in bars in central Taupo, including Mulligan's Bar on Tongariro St, before the attack.
Police were trying to establish what other bars she had visited.
"We're currently trying to establish if she left the bar alone or not and a major part of our inquiry is obtaining security footage from the CBD and further afield."
The woman was described as of average build and height with dark straight hair.
She was wearing jandals, a short denim skirt with a white singlet top and may have been wearing or carrying a black or dark top.
"It appears she was found in a direct route from the CBD to her home," Mr Turner said.
Earlier today Senior Sergeant Tony Jeurissen asked members of the public to report any suspicious activity they had seen or heard in the area of Spa Road, Taupo-Nui-A-Tia College, Waikato Street and Motutahae Street overnight.
One witness who came forward this afternoon told police she heard a woman screaming in the area between 2 and 3am today.
Police have also requested that residents search their properties for unusual items such as clothing.
They earlier photographed what appeared to be a pair of jandals, a grey blanket and another item of clothing on the ground in front of an early childhood centre on the corner of Waikato and Motutahae Streets.
Mr Turner said those responsible for the damage to the school should also come forward.
"To those people I would say 'come forward', we can then eliminate you from our inquiries, the longer you remain at large the worse it looks for you."
The woman reportedly came to New Zealand on a three month working holiday in October 2006 and returned to the United Kingdom in January of last year.
She returned to New Zealand in October last year and was employed at Wairakei.
Extra police from Tauranga and Napier have arrived to help with inquiries. More reinforcements are expected to arrive tomorrow.
A post mortem to establish the woman's cause of death will be held in Auckland at 8am tomorrow.
- NZPA, NZ HERALD STAFF
