Kiama Council workers acted quickly when a waste truck was forced to dump its load after a fire was identified in the rear compactor.
The incident occurred 7am on Monday, January 20, on Manning Street with the driver able to safely park then dump the load at the pavilion carpark.
Fire and Rescue NSW extinguished the fire.
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Council will undertake an investigation into the possible causes of the fire.
At this early stage it is assumed the likely cause is due to incorrect battery disposal.
Council staff will also be completing an incident report and debriefing.
No one was hurt in the incident.