A SHOCKED community was last night coming to terms with its second gruesome murder in three years after the body of a man was found lying in a pool of blood in a pub garden.

As they surveyed the scene outside the Miners Arms in Coundon, County Durham, grim-faced villagers spoke of an escalation of violence they claim is threatening to take over their village.

The victim had still not been formally identified last night but he is believed to have been in his thirties and lived nearby.

He had suffered extensive injuries.

The pub is just yards away from Wilson Avenue, where mother-of-three Sharon Metcalfe was hacked to death in September 1997 by a teenager high on drugs.

David Hamilton, now 20, is serving an indefinite life sentence for her murder.

In yesterday's incident, police found the body, having been alerted by a 999 call soon after 7am.

Forensic specialists checked the scene, leaving a trail of numbered yellow markers from the pavement outside the front door along a narrow side street and into the back garden where the body was still lying.

A 23-year-old Durham man was arrested in Evenwood. He was still being questioned at Bishop Auckland police station last night. A car parked in Evenwood was seized for examination by forensic scientists.

Home Office Pathologist Dr John McCarthy carried out a post mortem examination at Bishop Auckland General Hospital yesterday afternoon but police were not ready to reveal the cause of death last night.

Detective Superintendent Tom Ryan, who is in charge of a 40-strong investigation team, said he would like to speak to anyone who was in the Collingwood Street area between 10pm on Sunday and 8am yesterday.

Pensioners watching the police operation yesterday revealed their fears for their community's future. One said: "I daren't go out at night. Who would ever have thought we would be looking at a second murder in Coundon. We can't believe this could happen again. It has brought it all back."

Anyone with information should contact Bishop Auckland police on (01388) 603566.