Police believe the bag was a hoax, intended to make people believe it was an explosive device. The Police are continuing their investigations.
Police have moved the bag that could be holding an explosive device and opened the North Street, Orient Street corner to pedestrians.
The Central Business District is now completely open.
A police spokesman said Eurobodalla Shire Council workers noticed what appeared to be a football-style bag and alerted police.
"Within it there were enough items to be taken seriously," the officer said.
Follow along as the investigation unfolds in the LiveBlog below.