People have been warned not to go swimming or fishing at Bethungra Dam after blue-green algae was detected in the water.
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Junee Shire Council issued an alert on Tuesday after regular monitoring detected blue-green algae was present in the water.
Those headed to the dam have been warned to avoid contact with the water, the council said.
This includes swimming and fishing, and people should not to let their dogs swim in or drink from the water.
Warning signs have been positioned around the dam and will remain in place while levels of blue-green algae are present.
Council staff will monitor the dam through water samples and the public will be alerted when it is safe for recreational purposes.