Alicia Eborne was last seen nine days ago, setting off for a bus
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A man believed to be a bus driver is being held by police on suspicion of the murder of missing Devon teenager Alicia Eborne.
Detectives believe they know the location of Alicia's body and are trying to recover it.
They will not give details of the site, but are believed to be searching Great Shaugh Wood on the edge of Dartmoor.
They have also appealed for anyone who was in the Hele Lane area of Bickleigh on the day of Alicia's disappearance to contact them.
The 18-year-old went missing after leaving her home in the hamlet of Corntown, near Plymouth, last Friday.
Police have closed roads in the area around Great Shaugh Wood
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A 39-year-old man from Plymouth was arrested on Thursday evening.
Devon and Cornwall Police have until 2230 GMT on Sunday to question the man, who is not being named.
Alicia's family, who live on the edge of Dartmoor, were said to be "devastated" after being told overnight that police were now searching for her body.
At a news conference on Sunday morning, Chief Superintendent Liam McGrath said: "We have now further arrested the male in custody for murder and this is now being investigated as a murder inquiry."
Search dogs
Chief Supt McGrath said: "We are now aware of the location that Alicia is to be found and the recovery of Alicia is taking place during the course of the day."
He said the force was using search dogs that were new to the UK. Some 80 officers are taking part.
People living in Corntown say they feared the worst
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Alicia was last seen by her mother when she left home at about 0845 GMT on Friday to catch the bus into Plymouth.
It was believed she walked the half mile from Corntown to nearby Cornwood to catch the Plymouth-bound bus.
Chief Supt McGrath said: "As far as the family are concerned, they are aware... clearly they are devastated by such dreadful news and we are doing our best to make sure that the necessary support structures are in place to assist them."
Corntown resident Dr Jill Spencer said the news it was a murder inquiry confirmed what everyone had most feared.
"It almost had that inevitability. Although I can't really begin to imagine what the family are feeling and what they are going through.
"I have got a daughter who was brought up here. You can't help trying to imagine what it must be like for them," she said.
Dr Spencer, 61, said the people of Corntown, a hamlet of just 14 dwellings, would do their best to support the family.
"I am sure everybody will do everything they can and maybe try and help in practical ways."