The vehicle where the Command Wire Initiated Improvised Explosive Device was located, parked in a driveway meters away from a neighbouring property in Creggan
She was freed pending a report to the Public Prosecution Service.
Detective Inspector Clara Heaton said: “The woman, who was taken to the Serious Crime Suite at Musgrave Police Station in Belfast for questioning, was arrested under the Terrorism Act.
“Today’s arrest is part of Operation Ledging, which is our ongoing investigation into the New IRA’s bomb-making activities, as well as the group’s storage of explosive devices and equipment.
“Our investigation is focused on keeping the community safe and protecting them from the threat posed by violent groups.
“The manufacture, storage and use of unstable, home-made explosive devices in residential areas indiscriminately puts everyone at risk.
“I would, again, strongly urge people to report any suspicions they have about violent criminal activity in our community to police on 101.
“Alternatively, information can be provided to the independent charity Crimestoppers on 0800 555 111 which is 100% anonymous.”
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