The urn was handed into police in November after it was found near a skip bin by a local business owner in Brooklyn, more than 30km away from where it was lost.
Sergeant Ben Garrod began investigating with local funeral directors after noticing the urn bore the words “Mollie ‘May’ Grinsted”.
It was discovered Grinsted had died in 2007, and her next of kin, nephew Peter Hart, had taken care of her ashes at his property by the Hawkesbury River in Lower Portland.
Hart kept the ashes on his bookshelf but they were soon lost after his house went underwater during widespread flooding last year.
Sergeant Garrod said Hart was in shock after he was notified the urn was recovered.
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“He couldn’t believe it – he thought Mollie’s ashes had been lost in the floods,” Sergeant Garrod said.
“When I came to his home in Lower Portland to return her urn, he showed me all the damage to his property from the floods and he showed me Mollie’s old bedroom. Being able to return her ashes to her family is such a special and rewarding feeling.”
Being reunited with his aunt’s ashes brought tears to Hart’s eyes.
“Mollie never wanted to leave here, she loved it here and now she has come back home,” he said.