An NSW South Coast town is on high alert after a handful of COVID-19 cases were detected at a popular club.

There are eight cases associated with the Batemans Bay Soldiers Club, where the source is still unknown.

NSW Transport Minister Andrew Constance told Ben Fordham the community is “scared”.

“The place has quite literally shut down, businesses have made their own decisions to close.

“We have hundreds and hundreds of people in isolation.

“After the fires, this is a really tough time but we want to ring-fence it.”

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