A man has died and three people have been taken to hospital after a head-on collision at Raymond Terrace on Sunday morning.
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Police said the incident occurred on Richardson Road along Grahamstown Dam, past Benjamin Lee Drive, about 11am.
A Toyota Corolla is understood to have collided with a Holden Astra.
The driver of the Holden died at the scene.
Two female passengers of the Astra were taken to John Hunter Hospital with non-life-threatening injuries.
The female driver of the Toyota has been taken to hospital for mandatory tests.
At 2pm, crash investigators remained at the scene of the fatal crash.
Officers from Port Stephens-Hunter Police District have established a crime scene, which will be examined by the Crash Investigation Unit.
Richardson Road between Benjamin Lee Drive and Medwowie Road - around Grahamstown Dam - is closed in both directions. For live updates on the road closure, check Live Traffic NSW.
Police, Fire and Rescue NSW, NSW Ambulance, the Westpac Rescue Helicopter Service and Port Stephens State Emergency Service responded to the incident.
Anyone who may have dash-cam vision of the crash is urged to contact Raymond Terrace Police Station on (02) 4983 7599 or Crime Stoppers on 1800 333 000 or nsw.crimestoppers.com.au.