Traffic is flowing freely on Fitzroy Street after a train wagon derailed on Friday morning.
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An Australian Rail Track Corporation spokesperson said the derailment was cleared at about 10.30am.
"We thank motorists for their patience during the disruption," the spokesperson said.
Earlier:
Fitzroy Street in Dubbo is currently blocked after an incident with a freight train entering the Dubbo rail yard.
In a statement released on Friday morning, the Australian Trail Track Corporation confirmed a freight train was entering the yard at slow speed at 7.02am when a wagon derailed.
"There have been no injuries as a result of the incident," a spokesperson said.
"The rear of the train is currently blocking Fitzroy Street level crossing and ARTC is working with the freight train operator to execute a plan to clear the crossing as soon as possible."
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Police are at the site to direct traffic around the crossing.
Motorists are advised to avoid Fitzroy Street and use alternative roads like Darling Street.
"We apologise for the disruption and delays to local motorists and appreciate the community's patience at this time," the spokesperson said.