Mr Powell's body was found at the family home in Carmarthenshire
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A couple are believed to have entered into a suicide pact after being told their only son had killed himself.
The man and the woman, who lived in a remote cottage in Carmarthenshire, were found more than 10 miles apart.
Dyfed-Powys Police have not named the couple, but they were identified locally as Bob and Mary Powell, both aged 56.
The father's body was found at their home near Llandeilo, and his wife's in Llyn Brianne reservoir.
The couple were told by police on Thursday that their son, Neil Robert Powell, 27, who lived in Bridgend had been found dead.
He was discovered hanging from a tree in fields near a paper mill at around 1355 BST on Thursday.
His body has not been formally identified. The coroner has been informed and a post mortem examination is due to take place.
His parents were seen leaving driving away from their home, Warren Cottage, Taliaris, later that evening, apparently to the lake where Mrs Powell's body was found.
Then it is understood that Mr Powell returned home to tidy up his affairs before killing himself in the car inside the garage.
Mrs Powell's body was found in Llyn Brianne reservoir
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Dyfed-Powys Police launched an inquiry after the body of Mr Powell was found at his home on Friday.
The body of Mrs Powell was found in the Llyn Brianne reservoir, near Llandovery, later the same day.
Dyfed-Powys Police detectives were not looking for anyone else in connection with the deaths.
Prayers were said at several churches in the Llandeilo area on Sunday morning.
Police appeal
Local vicar Peter Bement said: "This is a close and friendly and warm community. A tragedy of this magnitude creates a tremendous sense of shock among friends and neighbours."
Jane Davies, who farms with her husband on land adjoining the cottage says that the couple's lives revolved around their love of their son and the refurbishment of the cottage.
She said: "They were very quiet, very nice people. (They) kept themselves to themselves but they seemed a devoted couple and they loved their son.
"Whenever you talked, especially to her, the son's name would come into the conversation."
Earlier, police said they wanted to trace anyone who may have seen the couple in the hours before they died.
Police helicopter
A spokesman said: "We would be interested in information from members of the public who may have seen a Blue Mercedes C180 Elegance motor car travelling between Llandeilo and Llyn Brianne dam after 0930 BST on Thursday or in the early hours of Friday.
"In particular I would like to speak to anyone who was at Llyn Brianne and saw a man and woman in the area during this period."
Mrs Powell's body was found by police helicopter at 1605 BST on Friday. Her husband's body was found 40 minutes earlier.
A Home Office pathologist conducted post-mortem examinations on the two bodies on Saturday.
The couple are believed to have moved to Carmarthenshire in the last couple of years and had been restoring their cottage.