Rosalie Mitchell, 46, died instantly when her car was struck by a train travelling from South Australia to Melbourne just before 5pm near Cressy.

She was only a few minutes from the Gemini lamb stud she ran with her husband Craig and their two teenage daughters.

Police said the crash occurred at a level crossing east of Nelsons Road.

It has no boom gates or lights but is clearly sign posted.

Ms Mitchell was the only person in the car and no train passengers were injured.

The exact cause of the collision was yet to be determined but police have ruled out self-harm.

It remains unclear if Ms Mitchell saw the approaching train before the crash, which pushed her vehicle hundreds of metres down the line, leaving many emergency workers shaken.

“It’s just a tragedy,” an emotional Senior Sergeant John Bemelmans told Channel 9.

“People are travelling on country roads and perhaps through familiarity or unfamiliarity they don’t pay enough attention to rail crossings.”

Many residents took to Facebook to voice their shock following the tragedy.

“We received the devastating news that this beautiful lady, wife and mother, Rosalie Mitchell lost her life in a level crossing accident near the family's home near Cressy,” one wrote.

“Such tragedies leave a gaping hole in the hearts of their loved ones that never fully repairs. 

“There is a big hole in our hearts right now.”

Cressy resident James Leebody told Channel 9 the tragedy would come as a shock to many in the small town, which is about 60 kilometres south of Ballarat.

Ballarat-based Minister for Regional Development Jaala Pulford paid tribute to Ms Mitchell.

“My heart goes out to the family and friends (who) have been impacted by this horrific accident,” she said.

Ms Mitchell’s teenage daughters left a bouquet of flowers at the crash site.