An out-of-town family experienced 'a parent's nightmare' on Friday morning when they woke to find their toddler missing.
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Detective Chief Inspector Mick Stoltenberg said the family were staying with friends not far from where the boy was located.
He said the toddler, who wandered the streets of West Albury before knocking on a woman's door at about 4.30am, had let himself out of the house.
"The little fella has let himself out, he's obviously woken up and decided to go for a walk and that is exactly what he's done," Detective Chief Inspector Stoltenberg said.
"He hadn't travelled all that far which is a good thing but the main thing is he's safe.
"The family have woken up started searching the house and yard, then the balloon has gone up, they've panicked they've contacted police and we've followed it up from there.
"It would be absolutely terrible for any parent to go through, I feel for the mother and father."
The detective said it was very lucky the child was unharmed.
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"Someone told me a lot of years ago it takes a village to raise a child and today is a perfect example because he turned up at a house where a local lady virtually adopted him as a grandson, so we're very lucky," he said.
"We're most definitely [lucky nothing else happened], not even anything untoward by someone else.
"You get a young child walking around there's drains there traffic and all things like that that bring risk and cause danger it's the best possible outcome for all confirmed."
Police and Department of Community and Justice staff looked after the boy until his family were located and they were able to be tearfully reunited.
Detective Chief Inspector Stoltenberg said it was a timely reminder to all parents and guardians to ensure any place they stay is childproofed.
He said residents should also be on the look out of children who look out of place and contact authorities if need be.
"At two years of age kids love to climb love, to wander, and love to look around if there's anything to come out of this it's a reinforcement to everyone out there - know where your kids are at all times, look after them regardless of their age," he said
"Whether you be in a motel, your own home or staying with a friend, you need to know it's childproof."
Detective Chief Inspector Stoltenberg said police would not be investigating further as there was no indication the incident was anything other than an accident.
"That's why the word accident exists, sometimes accidents happen," he said.
"We're talking about a young bloke who tried to go for a wander and a bit of an explore he's in a different area I don't anticipate it being anything other than accidental."