The woman, who cannot be named for legal reasons, stands accused of bashing her 16-year-old sister with a drying rack and stabbing her in the arm during a vicious fight over how a half-eaten box of chicken nuggets should be stored in their freezer.

The woman was charged with wounding with intent to cause grievous bodily harm and refused bail late last month, with the presiding magistrate at the time saying it had been a long time since she'd seen "such an alarming set of allegations".

However, in a fresh bail application heard in Wollongong Local Court this week, the woman's lawyer said she could live with her father in a different suburb if released and would agree not to contact her sister while the proceedings were on foot.

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Court documents the dispute between the two sisters began with chest pushing before the older sister allegedly picked up a drying rack and smashed it on the younger sister's head.

It is alleged the older sister then picked up a knife and lunged at her younger sister, however the younger sister did not realise she'd been wounded until a few minutes later.

It is also alleged a plastic spoon and a metal pot were used during the fracas. 

Meanwhile, the older sister left the house after the incident but stopped at a nearby service station when she saw police.

She allegedly told officers she was the victim of an attack by her younger sister, who had hit her in the head with a rolling pin and thrown a saucepan at her.

Police eventually tracked the younger sister down in Wollongong Hospital, where she was receiving treatment for the stab wound.

She provided the above version of events to police.

Officers arrested the older sister in the early hours the following morning and charged her.

In court this week, Magistrate Michael Stoddart agreed to grant the woman strict bail on the condition she live with her father, not approach her sister's school and not go within 100 metres of where she is living.