THE Hunter will lock down for a week, Premier Gladys Berejiklian has announced, while fragments of the virus have been detected in Dubbo's sewerage.
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All Hunter LGAs including Dungog will fall under the harsher restrictions as seen in greater Sydney from 5pm on Thursday.
It follows cases at schools in Maitland and Lake Macquarie, as well as an exposure at University of Newcastle's Auchmuty library.
Ms Berejiklian said testing overnight had revealed there were "some cases" in the Hunter but did not immediately specify how many had been detected.
NSW has recorded 262 cases in the past 24 hours.
45 infectious were infectious in the community, while five people have died in the same period; three in their 60s, one in their 70s, and one in 80s.
Dr Kerry Chant said five people were being cared for in the Hunter and investigations were underway, but they believed the source of infection was a Lake Macquarie gathering.
"We now think that the source extended from a gathering on Blacksmiths beach on Friday night," Dr Chant said.
Dr Chant confirmed two Maitland Christian School students were among those infected.
"All of the parents and children are asked to go home and isolate and we will provide further information," she said.
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