Tamworth Regional Council has responded following news Victorians were signed onto a local contracting job.
The interstate workers are chipping away at a $15-million water treatment plant in Manilla.
Council says the New South Wales Government has granted the workers entry, on the grounds they are doing essential work. Staff must self-isolate when not working, with Police ensuring the contractor works under a COVID-safe plan.
The project is set for completion by late 2021.