The Tarago community has raised concerns property prices will be effected by lead contamination found in the town.
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While lead contamination was first found at the rail corridor by Transport NSW in 2015, Tarago residents were only informed of the issue in late February this year.
The contaminated site is on the edge of a new housing development. While the development has been in the works since before 2009, the first house was built only 18 months ago.
According to a report by Domain of the 404 people residing in Tarago 86 per cent of the population were home-owners and 14 per cent renters.
Owner of Tarago Real Estate Judy Alcock said she wasn't sure of the long-term impact on property values but the lead contamination wouldn't help.
"[The contamination] is not going to encourage people to live here," she said.
The real estate agent said the state of the market would depend on how transparent Transport NSW were in handling the issue going forward.
"It will effect the market in the short term," Ms Alcock said.
Transport for NSW deputy secretary Carol-Anne Nelson said the only places with unacceptable levels of lead contamination were sections of the rail corridor and the adjacent Station Master's Residence.
She said all public places tested had come back "low and acceptable".
Ms Alcock said her main concern was "the rail siding should never have been built there."
Her biggest questions were "why other options weren't considered?" and "what date the rail siding was actually approved by the NSW Government?"
Ms Alcock said she was disappointed with her elected representatives and how the situation had been handled.
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