The Environment Protection Authority has found no evidence of perfluorooctane sulfonate (PFOS) in Stony Creek, Rutherford.
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But the watchdog is evaluating samples taken from water at Farley to determine the level of contamination downstream from the sewer treatment plant.
Hunter Water disconnected a Rutherford business from the sewer system last month after the chemical was found in the network.
PFOS is the chemical at the centre of a saga in Williamtown that has residents fearing for business, health and property values in the town.
”There is no evidence of PFOS in Stony Creek, behind the Rutherford Industrial Estate,” an EPA spokesperson said.
“Some results from sampling downstream of Farley [sewage treatment plant] have been received and are being evaluated.”