Emergency services were called to the scene about 7.20 am.
The woman, whose identity is not yet known but is believed to be in her 60s, died at the scene.
Police are investigating the death.
“While police are still working through the exact circumstances, at this time the death in Rye is being treated as non-suspicious,” a police spokeswoman said.
The body remains on the road, a short distance from a fire extinguisher.
There are houses on the north side of Peter Street, but a bush block on the southern side, where the body was found, near the intersection of Betty Street.
Anyone with any information is urged to contact Crime Stoppers on 1800 333 000.
With Nino Bucci For help or information, call Lifeline 131 114 and beyondblue 1300 224 636.