The Hanwood man and a Darlington Point man were reported missing to police on Saturday, and their bodies were discovered in a submerged car at around 5.30pm on Monday.

Hanwood shopkeer Dino Zappacosta said everybody in the village was shocked and saddened at the news, particularly at the death of the Hanwood resident.

"He had a young family and he was well known here in the village of Hanwood. He will be sorely missed," Mr Zappacosta said.

"His friends were distraught this morning. They couldn't believe what has happened. All the people who came into the shop were shaking their heads; they find it very difficult to come to terms with."

When the vehicle was discovered, State Emergency Services rescue operator Anthony Hatch plunged into the water to gain access to the car, however by the time he got there the bodies had clearly been there for days.

"I think the canal was full because of the rain, so you wouldn't have been able to see the vehicle earlier," Mr Hatch said.

"Now the rains have gone down somebody was able to spot it."

Two swiftwater technicians got into the car, however due to the difficult terrain the car was left overnight for police to carry out there investigations.

On Tuesday the car was winched out by SES volunteers and the bodies were finally removed from the vehicle.

Police officers are still carrying out investigations, however they say preliminary evidence suggests the car ran off the road and crashed into the canal, killing both driver and passenger.

Police say there have been no similar incidents along that road, however the surface could have become slippery after the recent rain.