A council spokesperson said a suspected fuel leak came to the attention of authorities after residents of the Wharf Apartments reported a "petrol odour" in the building last Thursday.

"Inspections by NSW Fire and Rescue revealed fuel seeping through the concrete walls of an elevator shaft in one of the apartment buildings," the spokesperson said.

"Eurobodalla Council has since been working with the NSW Environment Protection Authority and the nearby petrol station to investigate the potential source of the fuel."

The Council spokesperson said several inspections by council staff had not identified any further signs of fuel in the surrounding environment, including water and sewer systems, and residents of the affected apartments had been relocated.

"Eurobodalla Council has issued a 'prevention notice' to the owners of the fuel station under the Protection of the Environment Operations Act 1977," the spokesperson said.

"It requires that fuel deliveries cease immediately, and any remaining fuel be removed from all underground storage tanks.

"The owners are also required to engage qualified investigators within seven days to report on the integrity of the tanks, along with any contamination caused and remediation required.

"The owners have been co-operative to date."