The New South Wales town of Walgett is battling gruelling drought and is today hit with another blow as the community's only supermarket goes up in flames.

Key points: Walgett's only supermarket, IGA, has been "severely damaged" by fire

Walgett's only supermarket, IGA, has been "severely damaged" by fire Firefighters have been on the scene of the active fire since 8:30am

Firefighters have been on the scene of the active fire since 8:30am The town's nearest supermarket is now 80 kilometres away

NSW Fire and Rescue have declared the IGA Supermarket building completely destroyed after battling the active fire on Fox Street since 8:30am.

There have been no reports of injuries.

It is the second time the building has been damaged by fire after it was first destroyed in 2013.

NSW Fire and Rescue acting superintendent, Greg Wright, had previously stated that at the very least the building would be severely damaged.

"This is devastating news for the town," Mr Wright said.

Walgett's nearest alternate supermarket is 80 kilometres away.

Walgett Community College campus adjoins the grounds of the burning supermarket.

A spokesperson for the NSW Department of Education said all students and staff had been moved to a safer area of the school.

Many students were sent home from Walgett Community College while the town's IGA was on fire ( Supplied: Kylie McKenzie )

Supermarket struck twice

Witness Kylie McKenzie, who lives just 100 metres from the supermarket, was on her way to buy groceries when she encountered thick black smoke.

"I just went over there and all the staff had been evacuated out; the roads were blocked off," she said.

The smoky scenes were all too familiar for Ms McKenzie, who said the 2013 blaze left the town without a supermarket for almost a year.

"It was really, really hard," she said.

Loading

"It's devastating to have it happen again so close."

St Vincent De Paul's executive officer for the north-west region, Paul Donnan, witnessed the front window of the supermarket explode at 9.40am.

He described the scene as "frightening".

Mr Donnan said he would be helping mobilise emergency food relief for Walgett's residents in the coming days.

"We are looking to see what we can do to support people in these circumstances and or provide something for an ongoing basis for people who are in crisis," he said.

Police will work to determine the cause of the fire and will meet with the local council to ensure the community will have adequate access to groceries and other provisions.