UPDATE, 10am: The elderly woman has been reunited with her family.
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Police said the family was notified by a friend who saw the story on social media.
"We would like to thank the people who helped share the information on social media," a police spokesman said.
"The woman lives with her family and had snuck out during the night.
"The family hadn't realised she was missing. They assumed she was still tucked up in bed."
EARLIER: Bendigo police are calling for help from the public to identify a woman they located in Kangaroo Flat.
A police spokesman said the woman was found walking around Kangaroo Flat in the early hours of this morning.
The only thing the woman can remember is her first name "Claire".
Police located the woman around 3.30am near the intersection of Wesley street and High Street.
The woman has been unable to provide police with much information except to say her name in Claire.
She appears to be between 70-80 years old, around 155cm tall with a thin build and short grey hair.
At the time she was located she was wearing a light purple and gold striped long sleeved shirt, black pants and black shoes.
"She is very confused and we are hoping to help locate any relatives she may have in the area," the spokesman said.
"She is currently at the Bendigo Police Station. We would love to hear from anyone who has an elderly family member named Claire so we can get her home."
Anyone with information can contact the Bendigo Police Station on 5448 1300.