Townsville Mayor Jenny Hill says if the outbreak continues there will be major economic impacts on the city.
The outbreak has spread to at least three suburbs, which means it is difficult to contain.
Over the past fortnight there have been five confirmed cases, and two other likely cases, which are being tested.
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Townsville Public Health Unit physician Dr Steven Donohue says dengue was probably brought to the city by sick travellers from Cairns, where more than 100 cases have been confirmed this year.
"It's like a shotgun across the suburbs, which is unusual.
Normally when you get an outbreak it spreads within the neighbourhood," he told AAP.
"I'm not saying everyone is going to get dengue. Presuming that everyone does take precautions this will not be a problem."
Ms Hill is calling on the state government to put more resources into containing the outbreak as the council is stretched.
"We're being told cuts have been made and that's a concern I now have as it impacts on the management of contagious diseases in the region," she told AAP.
"If the outbreak isn't contained there could be major impacts on the region."
The illness can cause severe fever and pain, aches, bleeding, a rash and exhaustion.
An elderly woman died from the illness in Cairns in 2009 and up to 20 per cent of those who contract the fever are admitted to hospital.
Teams from the public health unit are canvassing suburbs, checking properties for stagnant water and informing residents about how they can contain the outbreak.
Comment has been sought from the Queensland government.
