John Burrows, 58, was killed by an explosion after he opened the garage door of his rear shed in Portland, in Central Western NSW.

As the small rural town awoke yesterday to the shock realisation that a man-made explosive device may have been deliberately detonated in their own community, police told residents that there was no suggestion of any "broader connotations" such as terrorism, adding that investigators were treating it as a "local, isolated incident".

NSW Police set up Strike Force Avail yesterday, comprising officers from the homicide and arson squads and Chifley Local Area Command, to investigate the "suspicious" death.

Chifley Local Area Command crime manager Detective Inspector Luke Rankin confirmed police were aware of a "history of ill will".

He said: "Any sort of issues that the victim might have been experiencing, in the present or the past, are being explored as we continue our investigations.

"It's a small community in which everybody knows one another. We've received a good flow of information from the community, which we are exploring."

It was shortly before sunrise on Friday that residents in Portland reported a "very loud explosion".

Moments later, joggers discovered a badly burnt and injured man lying on the roadway. Mr Burrows had opened his garage door in Wolgan Street, then was hurled off the premises into the adjacent Church Lane. Despite attempts by paramedics to save him, he died at the scene.

Inspector Rankin confirmed that while combing the scene, police discovered the remains of an "improvised explosive device". The NSW Police Rescue and Bomb Disposal unit were dispatched to the scene; yesterday, a crime scene remained in place.

A nearby resident, June Lane, who went to school with Mr Burrows' mother, said the blast had sounded like "thunder" but when she peered out of the window, she realised "there was no storm".

She said she has known Mr Burrows, his wife, Shirley, and their adult children for decades.

"He was so friendly, he was such a lovely fellow, this is the last thing I'd ever think would happen to him," she said.

eduff@fairfax.com.au