Mr Snowball said he knew the man who had discovered the woman, aged 68, walking along a road on the outskirts of town following the attack.
"He just wrapped something around her arm straight away and chucked her in his truck and headed straight to hospital," he said.
The victim was later flown to Royal Darwin Hospital, where she remains in a stable condition.
Balanggarra Parks and Wildlife rangers later captured the 2.2 metre saltwater crocodile using fishing line.
"Because this crocodile attacked a person and it was in an area used by people and pets it was imperative that we removed it and we ensured that it was destroyed quickly and humanely," Parks and Wildlife district wildlife officer Peter Carstairs said in a statement.
The crocodile launched about two metres out of the water before attacking the woman.
Crocodile activity increases during the warm, wet season in the state's north.
"The wet season is breeding season for crocodiles so we do have higher activity this time of year, and also the water temperature has increased, they are more mobile in the heat," A Parks and Wildlife officer warned.
Mr Snowball said crocodiles were often seen near the town's jetty but not Three Mile Creek, which is a relatively small body of water.
"I've actually seen locals swim in there and it's also a popular spot to get live bait for fishing," he said.
The 55-year-old cafe owner said he was not aware of an attack this severe in the town in recent memory, but there had been several close calls.
"There have been a few close misses and a few dogs taken and there are a lot of crocs around," he said.
- AAP
