Accused Vic murderer not impaired: Crown

Prosecutors will challenge a Melbourne woman's claim she was mentally impaired when she allegedly stabbed her neighbour to death during a dispute about parking.

Eva Whitecross, 54, has pleaded not guilty to murdering her neighbour Rachel Tyquin on the grounds of mental impairment and appeared before the Victorian Supreme Court via video link on Thursday.

"The crown position is to contest the suggestion of mental impairment," senior prosecutor Chris Boyce SC told the court, which set a trial date of July 31.