Graves at Wellington cemetery have sunk due to "ongoing wet weather and prolonged water exposure".
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Dubbo Regional Council staff have been assessing the condition of the graves after the flooding of Bell River.
A statement released by council on Wednesday afternoon said some of the graves had sunk.
"Unfortunately, a number of graves have sunk to varied levels due to the ongoing wet weather and prolonged water exposure, particularly gravesites located at the lower end of the cemetery," the statement said.
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"Council's operational staff have taken great care when attempting to fill affected gravesites with top soil, however the ongoing wet weather has made the task impractical and unsafe, with machinery and equipment repeatedly becoming stuck in the over-saturated grounds."
Council staff will continue to monitor the situation and will move to carefully fill the sunken areas with top soil as soon as it's possible.
"Council is extremely mindful that this may be distressing for family and friends of loved ones whose gravesites have been affected," the statement said.
"Our ongoing thoughts are with those affected and we want to reassure the community we are acting as promptly, and safely as possible while minimising any further disruption to the final resting sites of loved ones."