Vulnerable people will be moved into shelters in remote communities in the top end as the category two tropical Cyclone Lam heads towards the Northern Territory coast.
The cyclone is currently 230km east northeast of Nhulunbuy and has slowed slightly to about 11km/h.
Meteorologists still expect it to turn south and run along the east coast of the NT.
For Nhulunbuy, the critical period will be later on Wednesday and early on Thursday, when the storm could intensify to a category four, said Todd Smith, Regional Director for the Northern Territory's Bureau of Meteorology.
"The NT typically experiences small tropical cyclones compared to other ocean basins, that doesn't mean that the system can't be very intense," he told reporters.
"Although the gale force winds may not extend too far out of the centre, the winds near the centre will certainly pack a punch."
Acting Police Commissioner Reece Kershaw said those without a place to stay will be moved into shelters, such as the hospital on Groote Eylandt, brick buildings, and residences built to the cyclone code.
He said there were enough coded shelters for residents in the area, but no one else is to go to public shelters until advised.
"Clearly we are standing on the cusp of a weather event," said Andrew Warton, director of the NT Emergency Service.
"This is the cyclone season and it's incumbent upon individuals and communities to be prepared."
He said all communities in the cyclone watch zone, from Maningrida down to Groote Eyelandt, and in the cyclone warning zone from Elcho Island to Cape Shield, should be ready with their emergency kits.
Non-essential public servants have been advised to stay home on Wednesday, and five schools in the area expected to be affected will be closed.
Residents have been advised to monitor local radio and use the SecureNT website: www.securent.nt.gov.au.
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