A medical student is believed to have discovered human remains when gardening in a front yard at Mossy Point on Sunday, May 17.
Police say the student located a bone at about 9.30am protruding from a garden bed at the suburban home, south of Batemans Bay.
A group of students from ANU's Rural Clinical School were living at the River Road address.
They recognised the bone, possibly identifying it as a femur - a thigh bone.
Detective Sergeant John Robertson said all indications so far showed the discovery was a human femur, but it was yet to be confirmed.
Detective Sergeant Robertson said the students did the right thing by contacting police.
"After they contacted police, the forensic unit came out and took possession of the bone," he said.
"Normal protocols were followed after the discovery."
He said the bone was taken to Batemans Bay and would be sent to a forensic medical department for testing.
No further information was released.
The Department of Planning Industry and Environment was at the scene as investigations continued on Tuesday, May 19.
A department spokesperson directed all inquiries to NSW Police.