A man who suffocated a little girl and dumped her body in a creek after luring her into his caravan with a kitten is now living within walking distance of five schools.

Tim Kosowicz enticed Chloe Hoson into his caravan with a cat and strangled and suffocated her with two shopping bags after she knocked his bowl of cannabis over in Lansvale Caravan Park, in Sydney's west.

The then-22-year-old confessed to molesting the five-year-old's dead body, putting her in a duffel bag and dumping her in a creek, and later told psychiatrists that he was motivated by voices telling him to kill.

He escaped jail and a conviction after being diagnosed with schizophrenia in 2005 and went into a psych ward - but is now living unsupervised in a townhouse in Carlingford in Sydney's north west - among thousands of families,