Western NSW Local Health District has warned against mosquito bites as the Japanese encephalitis virus or JEV has caused the death of a man from Griffith.
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There have also been two confirmed cases near the NSW border to Victoria and more people in other areas of the state are being monitored.
A man from Corowa is currently in intensive care and a child from southwest NSW is infected and both are being treated in hospital.
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In the Dubbo region, there have been no confirmed JEV cases but precautions were issued for residents in towns situated nearby river or waterways, like Dubbo where the Macquarie River is a main tributary. They must be careful at this stage to avoid being bitten by mosquitoes, a WNSWLHD spokesman said.
"The best way to avoid potential infection is to avoid being bitten. Unfortunately, recent wet weather has led to very high mosquito numbers so we are urging everyone to continue being careful and take sensible precautions to avoid mosquito bites," the spokesman said.
"That is particularly important at dusk and dawn when we know mosquitoes are more active, and also around waterways, which we have many of in our region.
"If you are planning activities near or on waterways, or where mosquitoes are present, be especially cautious."
Acting NSW chief health officer Dr Marianne Gale confirmed there were several people in NSW regions undergoing testing and more cases are expected to be confirmed over coming days.
JEV is spread by mosquito bites infecting animals and humans with confirmed samples from pig farms in regional NSW.
NSW Health said the virus has never been detected in NSW in animals or humans until February this year samples from pig farms in NSW, Queensland, Victoria and South Australia confirmed its spread.
No human-to-human transmission has been found nor eating pork meat and pig products could cause the virus in a person.
Dr Gale said steps were being taken to determine the extent to which the virus was circulating.
NSW Health has also confirmed "there is no specific treatment for JEV, which can cause severe neurological illness with headache, convulsions and reduced consciousness in some cases".
Dr Gale, said the "best thing people throughout the state can do to protect themselves and their families against JEV is to take steps to avoid mosquito bites."
Some simple precautions issued by NSW Health include avoid going outdoors during peak mosquito times, especially at dawn and dusk, and close to wetland and bushland areas. Also, wear shoes with socks, long sleeves and pants outdoors.