Staff at a water treatment facility in Katoomba found the remains in the Upper Cascade Creek dam at noon on March 18,police said in a statement on Wednesday.
Ms Devine,41,had been reported missing from Waratah,near Newcastle,on September 5,2018,and police said at the time they had grave concerns for her welfare.
CCTV footage released by police on Wednesday showed Ms Devine leaving a hotel on Katoomba Street,Katoomba,on September 6,the day after she was reported missing.
She was seen wearing a bright yellow cardigan,black pants and carrying an orange handbag.
CCTV footage also captured her buying some food,a scarf,a jumper and shoes from shops in Katoomba.
But nothing was found with her body or nearby.