Man charged with murder after alleged altercation turned deadly

A man has been charged with murder after an alleged neighbourhood dispute turned deadly in the New South Wales Hunter Valley yesterday.

An argument initially broke out between the two neighbours on Cambridge Avenue in Raymond Terrace in the early hours of Tuesday morning.

Police were told a 38-year-old man was involved in an altercation when he was allegedly assaulted.

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Emergency services were called at around 2am, acting on reports the 38-year-old had been found with serious head injuries.

He was treated by paramedics but died at the scene.

A short time later, a 29-year-old man was arrested nearby.

He was taken to the local police station, before being transferred to Maitland Hospital for assessment.

He has since been charged with murder and was refused bail to face court today.

A police spokesperson confirmed both men were believed to be armed - the dead man with an axe, and the 29-year-old with a scooter.

They were only "casually" known to one another as neighbours, police believe.

Both men are known to police.