NSW jet ski crash kills 'good neighbour'

A small NSW mid north coast town is mourning the loss of a local woman killed in a crash between a boat and jet ski.

The 54-year-old, who was operating the smaller craft, died at the scene at Nerong, south of Forster, on Friday afternoon. Her passenger, an eight-year-old boy, suffered a broken leg and nose.

The skipper of the boat, a 46-year-old man, was also flown to hospital with a broken nose and ribs.

Local man David Hirtes says the community has lost a good neighbour.

"Nerong has just lost a good neighbour, a good working neighbour. Her husband ... is very distraught," he told the Nine Network on Saturday.

"It's just a tragic accident."

Police superintendent Mark Hutchings said the boat had been seized for forensic testing.

"We are mindful of the tragedy that has befallen everyone involved and what sort of affect last night's events would have had," he said.

"Specialist marine investigators have been sent to the area to work with local detectives so a report can be prepared for the coroner."