Grandma Paozu is a respected elder of Aru Village.
Grandma Paozu was the earliest known holder of the six star Dragon Ball which was a family heirloom to her that passed on through many generations. She gives it to Goku and Bulma after they defeat Oolong and rescue the missing girls.
Grandma Paozu is later seen as a spectator in the 21st World Martial Arts Tournament along with the Sherman Priest, and at the Protective Dome's unveiling with the Sherman Priest and Pochawompa (in the Dragon Ball Z episode "A Girl Named Lime").
(Source: Dragon Ball Wiki)