A beachfront road at Hawks Nest has collapsed during heavy seas, raising concerns about homes along the strip.
The road, which is parallel to the erosion-prone Jimmys Beach, fell away in parts this week during big south-easterly swells and strong winds.
Myall River Action Group spokesperson Gordon Grainger said "the rest of the road is susceptible to erosion too".
"There are sand cliffs all the way along between the beach and road, but they're not encroaching into the road yet," Mr Grainger said.
"There are houses that are very close to being undermined. It's quite an event - one of the worst.
"I think the council will be required to continue sand restoration until such time as they are allowed to make a permanent fix."
A MidCoast Council statement said parts of the road - named The Boulevarde - were damaged.
"Power and sewage services were briefly interrupted," it said.
"MidCoast Council crews and Essential Energy staff worked quickly to restore services."
A crane had to hold up a power pole that was tilting due to beach erosion.
SES Stroud posted a video of the scene on social media.
It stated that only one of three concrete bollards remained in the area "when we departed".
This was due to "pounding waves claiming the other two".
The council statement said part of the road would "remain closed until the weather abates and a full damage assessment can be carried out".
"Once the immediate situation abates, council will undertake scheduled sand replenishment of Jimmys Beach, which is designed to buffer the area from events such as these.
"At this stage there are no concerns for the Manning Point and Old Bar Beach areas, however the situation will be closely monitored."
Mr Grainger said the Boulevarde's predicament "should never have been allowed to happen".
"Originally the Boulevarde was a beach. It was allowed to be developed in the early 1960s," he said.
"It is very susceptible to erosion every time we get a major sou'easter."
Mr Grainger said dozens of studies had been done to consider solutions.
A sand transfer system, established in July 2019 at a cost of $4.1 million, was jointly funded by the NSW government and council.
Pumps were used to transport sand from a stockpile on the Winda Woppa peninsula to Jimmys Beach.
"That includes the black pipe in the photos - it transported the sand. The pipe was covered but it's now exposed," Mr Grainger said.
Two sand renourishment projects occurred, but the operation and cost were independently reviewed.
The council then used trucks to transport the sand, which Mr Grainger said was "cheaper".
He said money wasted on the sand transfer system was "a bloody disgrace".
An artificial reef about 300 metres offshore had been proposed as a "permanent fix".
"That would then act to block wave surge. Stone walls along the edge don't work because it erodes behind them. Tests have proven that," Mr Grainger said.
The CSIRO has previously said that Jimmys Beach was at extreme risk due to sea level rise.
