The woman, aged in her early 20s, was reported missing about 1pm on Tuesday after becoming separated from friends and family at Cataract Gorge in Launceston.

Police discovered her body shortly before 4pm on Wednesday.

"Out of respect to friends and family no further details will be released," Tasmania Police said in a statement.

"Our deepest condolences are with the family and loved ones of the deceased."

SES volunteers, members of Surf Life Saving Australia and other community organisations were involved in the search, which continued throughout Tuesday night.

The woman was last seen swimming in an area of the gorge known as First Basin, which is 20m deep.

More than 30 people were involved in the search on Tuesday.

A water release was scheduled by Hydro Tasmania from Trevallyn Dam into the gorge between 10am and 4pm on Tuesday for a paddling event.

Signs at the gorge warn people water levels may rise without notice.

Police have not drawn any links between the scheduled water release and the woman's death.

Australian Associated Press