The accident happened around 10:15 p.m. on Library Avenue just north of Farm Lane.
75-year-old Dorothy Hershman of Newark was driving southbound on Library Avenue when she crossed the road's center line, police say.
She then ran head-on into a car traveling northbound.
Hershman was taken to the hospital where she was pronounced dead.
A 24-year-old female driver and a 25-year-old passenger in the other vehicle sustained serious but non-life-threatening injuries.
They were both treated at the scene and taken to Christiana Hospital.
Police have not released their names and continue to investigate.