Residents in parts of the NSW Hunter Valley have been urged to avoid creeks running metres from their homes as agencies work to prevent toxic chemicals leaking from a derelict industrial site.
The refinery at Rutherford, previously owned by Truegain, has sat rusting behind chain-link fences for almost two years while pools of unknown substances collect on the concrete.
NSW Environment Minister Gabrielle Upton said there was a "high-level of PFAS contamination" at the site - a group of chemicals used in firefighting foam.
AAP understands the agencies tasked with the clean-up are concerned a heavy rain could wash the chemicals into nearby creeks.
"The Environmental Protection Agency is working closely with the former Truegain owners and Maitland City Council to ensure the site is suitably cleaned up and does not present a risk of discharge of contamination into the nearby Stony Creek, particularly after heavy rain," Ms Upton said on Wednesday.
Testing at Stony Creek and Swamp Creek earlier this month detected chemical concentrations that exceeded the recommended level of PFAS for drinking water.
Stony Creek's reading also surpassed the recommended level for recreational water.
Ms Upton said residents had previously been warned to avoid the waterways in March after a containment system at the industrial site overflowed during intense rainfall.
Those downstream of the premises will be contacted again in the next week.
Truegain, along with Australian Waste Oil Refineries which shared the site, were tasked with disposing of a variety of oils, fuels and chemicals.
But they faced heavy community criticism after being accused of emitting a mysterious toxic smog - dubbed "the Rutherford stink" - believed to be behind a wave of asthma attacks and skin rashes.
Truegain's environmental protection license was suspended in April 2016 following numerous contamination events and Hunter Water reportedly disconnected the site after PFAS was discharged into the sewer.
In September 2016 the refinery abruptly shut down, leaving workers out of pocket.
The ongoing management of the troubled site will be put out to tender, which closes on June 14.
The EPA announced it was still investigating other companies as potential sources for the PFAS contamination, but insisted town water and rainwater tanks were safe to drink.
"As such we are reminding residents to avoid using water from Stony Creek and Swamp Creek waterways, downstream of the Rutherford Industrial Estate, for domestic or livestock use," EPA chief executive Anissa Levy said.
Labor's Maitland MP Jenny Aitchison questioned why it has taken two years for the minister to act on the "environmental disaster".
"I am aware that there are livestock grazing near both Stony and Swamp creeks near Telarah," she told AAP.
"Can the Minister assure me that the owners have been notified of the risks?"
At least one agency in the US says some PFAS chemicals may increase risks of cancer and other health problems but the NSW government argues there is no conclusive link.
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