Snow has fallen in the Blue Mountains, west of Sydney as the mercury plummeted below zero overnight.
Inspector Peter Scheinflug from the Springwood Police Station, says roads in the area are wet but there has been no ice developing.
He says locals were out in the streets last night when the light dump started just after 8:00pm (AEST).
"Even at midnight surprising how many locals were out and about playing in the snow and throwing snowballs and doing those sort of things despite the cold," he said.
A light dusting also covering parts of the New South Wales central tablelands.
The Bureau of Meteorology forecast snow down to 700 metres overnight, with showers in Orange and heavier falls reported at Oberon.
Duty forecaster, Dimitri Danchuk says the cold snap is expected to ease today.
He says there is unlikely to be any more snow.
"Some of this light rainfall could be observed as snow because at the beginning of the night," he said.
"Snow levels were at about 700 metres over the region, effectively meaning that Orange did have a pretty good chance to see some snow crystals."
Meanwhile the Monaro Highway, in the state's south, is closed between Bombala and Snowy Mountains Highway because of heavy snow falls.
© ABC 2012
10:11 EST Perth will get another splash in its wettest May in eight years before the sun takes hold for the rest of the week.