14/07/2016 1:31 PM AEST | Updated 15/07/2016 12:57 PM AEST

Grenade Outside Pub Sends Griffith Into Lockdown

The army is rushing to the NSW town.

Stephen Mudd, The Area News/Fairfax
A rusty grenade has been found in the middle of Griffith.

Part of the regional NSW town of Grafton has been shut down after a WWII era "pineapple grenade" was found on the main street.

Police said council workers found the unexploded ordinance outside the Gemini Hotel on the Riverina town's main drag about 8.30am (AEST).

Griffith police have reportedly called in army specialists from Canberra -- over 350 kilometres away.

Local press expects the army bomb experts to arrive at about 3pm, with NSW Police telling The Huffington Post Australia it was an ongoing operation.

Updates on the situation can be read here from local paper The Area News.

It is reporting that locals aren't really that bothered by the possibly lethal item and that residents are "happily venturing as close to the device as police are allowing".

An exclusion zone has been set up and local residents are said to have been told to stay inside until at least 4pm.

Police told the ABC that the grenade looked to be pretty old and that the council workers called the authorities as soon as they stumbled upon it.

"This object was deemed to be a suspicious article and police were immediately notified," Inspector Griffith LAC's Kim Traynor said.

"Upon further inspection of the item it appears to be an old hand grenade."

Police don't know whether the explosive could still go off and that's why they've called in the Army.

Numerous businesses nearby have been evacuated and roads in the area are closed.