The inquest into the three-year-old's disappearance has focused on Frank Abbott, a convicted pedophile and person of interest in William's suspected abduction from the NSW mid-north coast in September 2014.

Nurse Kirston Okpegbue helped treat Ray Porter at a Port Macquarie aged care home, where he allegedly admitted his involvement in William's disappearance.

Ms Okpegbue told Taree Coroners Court on Tuesday that Mr Porter, who has since died, claimed he gave a friend and William a lift north.

She said Mr Porter had approached her and said he "didn't do anything wrong" but claimed he played a part in taking William from the small town of Kendall.

It was not explicitly said that Mr Porter was referring to Abbott when he talked to Ms Okpegbue about his purported friend.

But the inquest heard Mr Porter only spoke of two friends - one known as "Frank" - and Mr Porter and Abbott were fishing buddies.

Ms Okpegbue said Mr Porter told her in April last year that he had been in a car with William.

Counsel assisting the coroner Gerard Craddock SC asked Ms Okpegbue about a "strange conversation" she had with Mr Porter in which he talked about picking up his best friend with a "cute little boy".

Asked if that boy was William Tyrrell, she replied: "Yes."

"Did he say something about picking them up from behind a shed at Kendall School?" Mr Craddock asked.

She replied: "Ray said he had picked up his best mate at Kendall School. Behind the school was a shed. From there they drove 300km."

Ms Okpegbue said Mr Porter, who died last year, was distressed following the conversation and had placed his head on her shoulder.

Mr Porter had maintained his mental faculties and his decline was physical during his time in the Uniting Mingaletta aged care home, Ms Okpegbue said.

Earlier, the inquest heard Abbott had bragged to locals that he knew where William was buried.

Danny Parish told the inquest Abbott was staying on his family's property at Herons Creek at the time William vanished from nearby Kendall.

He said Abbott had on several occasions claimed to have knowledge of William's whereabouts and suggested he was buried by another local, Geoff Owens.

Mr Owens worked on the Benaroon Drive property from which William vanished.

Mr Craddock asked: "Did Frank Abbott say 'I know where William Tyrrell is, why don't you check Geoff Owens' place?'"

Mr Parish replied: "He was telling everyone in Kew."

A day earlier, the court heard Mr Parish's brother Martin - a Baptist minister - had continually advocated for Abbott and claimed he was innocent after he was charged with a sexual offence against a child.

Abbott was acquitted but later convicted of separate child abuse charges.

Abbott lived on the Parish family property in a caravan and would do handyman work for $10 an hour.

Mr Parish said he was fearful of Abbott after hearing him brag he had twice beaten a murder charge and that "I'd go to jail anytime" because he would get "three square meals a day".

"I was scared of him from that day," he said.

Australian Associated Press