The daughter of former NSW premier Neville Wran has been charged with the murder of a small-time drug dealer at Redfern on Sunday night.
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Harriet Wran, 26, was arrested by police with another man at Liverpool late on Wednesday.
She was interviewed by police overnight before being charged with murder, attempted murder and aggravated break and enter.
"Yesterday afternoon (Wednesday), police arrested a 26-year-old woman and a 35-year-old man in Liverpool," NSW police said in a statement.
"The man was taken to Liverpool Police Station and the woman was taken to Cabramatta Police Station.
The 35-year-old man also was charged with murder, attempted murder and aggravated break and enter.
Both he and Ms Wran were refused police bail to appear at Liverpool Local Court on Thursday.
The stabbing victim was Daniel John McNulty, 48, who died at a unit block on Walker Street, Redfern, on Sunday evening.
Emergency services were called to the unit block about 7.45pm, but Mr McNulty died from his injuries.
A second man, aged 42, was also stabbed multiple times during the altercation and was taken to hospital.
Following investigations, a red hatchback was found in Waterloo about 3pm on Wednesday, police said.
Police have already charged a 29-year-old man, Lloyd Haines, with Mr McNulty's murder.
He was also charged with attempted murder and aggravated break and enter. He appeared at Parramatta court on Wednesday and was formally refused bail.
Barrister Winston Terracini SC arrived at Cabramatta police station on Wednesday evening to represent Ms Wran.
As he was leaving the police station several hours later, Mr Terracini said his client was "just being processed at the moment and there will be a bail application before the court tomorrow, and we will take it from there".
He said Ms Wran had been treated well during the charging process, saying there was "absolutely no complaint about the police".
Detectives went to Ms Wran's Woollahra home on Wednesday but no one was there.
Mr Wran, who was Labor premier from 1976 to 1986, died on April 20 this year.
Ms Wran's Facebook page states she is studying modern history at the University of Sydney.