The flag will fly until tomorrow as the community absorbs the sudden and unexpected loss of the renowned Aboriginal artist.

Mayor Allan Smith yesterday paid tribute to the "one-of-a kind" woman who was his "reality check" and teacher.

"Lorni gave me a better understanding of Aboriginal culture, the things that can happen in a society," Cr Smith said.

"She helped me deal with some of my issues and taught me something about race relations. I have the greatest respect for her - she made me a better person."

Lorni Hyland died in her West Dubbo home on Tuesday morning leaving behind a grief-stricken community.

She is best remembered for a series of fence murals in the troubled Gordon Estate, created with the help of neighbourhood children.

Cr Smith said the Dubbo community would want "some form of practical and lasting recognition" of Ms Hyland's invaluable contribution to the city.

"People like Lorni don't come along very often and I'll tell you why," he said.

"Even though she worked with Aboriginal young people she fought tooth and nail for young people no matter what their colour. She crossed the colour barrier and she encouraged other people to do the same. Lorni dug her feet in and kept coming at you until she got what she wanted.

"Her work within the community won't be forgotten and I personally would like to see something happen that will continue that work - something related to youth."