Species including barramundi, freshwater catfish, bony bream and butter bream lined the edges of the dam.

Cloncurry Shire Council chief executive officer David Neeves said it was the first time he had ever seen anything like it in the area.

``I went out to the dam to see how much water the rain  put in the dam,'' Mr Neeves said. 

``We suspect it's because of the reduced oxygen and increased turbidity in the water.'' 

Mr Neeves said a crew of council staff was removing the fish carcasses from the  water yesterday. He assured residents the dam was not being used as a source for the town's supply due to its low water levels.

Mr Neeves said the council was doing everything possible to respond to the unique occurrence.