A woman charged with manslaughter in the death of a toddler at a licensed day home in Medicine Hat, Alta., was granted bail Tuesday.

Erin Jackman, 24, was released into the community under strict conditions barring her from any contact with children under the age of 12 or with the family of the 19-month-old toddler who died.

Jackman is only permitted to see her own two children under supervision and must stay in her home at night.

Jackman was crying and kept her head lowered throughout much of her court appearance.

"She's happy to be released," Lyndon Heidinger, her lawyer, told CTV Calgary.

"We'll take it from there in terms of whether we need to apply to amend those (bail) conditions."

Police said Tuesday that the baby died from "blunt force trauma."

The incident that led to the toddler's death last week has inflamed the community in Medicine Hat, located about 300 kilometres southeast of Calgary, reports CTV Alberta Bureau Chief Janet Dirks.

It has also launched a public debate over regulations governing day homes, considered somewhat of a cottage industry in the area, she said Tuesday from Medicine Hat.

"It seems that it's a two-tier system: there are day cares and there are day homes, and they don't seem to have to follow the same rigorous rules," Dirks said. "Some people are saying the rules have to be tougher."

Police say the toddler was assaulted in the day home last Monday and had to be airlifted to Calgary with critical head injuries. The toddler died in Alberta Children's Hospital two days later, on July 21.

Jackman initially faced an aggravated assault charge, but that charge was upgraded on Monday after an autopsy was performed on the infant.

Police are expected to shed light on the investigation in a news conference this afternoon.

Jackman, who also faces a charge of failure to provide the necessities of life, is due back in court Sept. 14.

Meanwhile, the toddler's family has set up a trust fund to help pay for the child's funeral.