Over 500 packets of illegal cigarettes have been seized from a Coonabarabran tobacconist after they were discovered hidden under the floor.

Police, NSW Health and Warrumbungle Shire Council personnel carried out an inspection of the Dalgarno Street premises on Wednesday 23 July following concerns over safety and supply of prohibited tobacco products.

A routine inspection escalated when they discovered hidden underfloor compartments containing the cigarettes, loose-leaf tobacco, 26 vapes, and nicotine pouches, according to a media release from the council.

It follows the successful prosecution earlier this week of the operator of another premises found to be supplying prohibited tobacco products

"Given the serious risks to public health, a Cease Use (Emergency) Order was immediately issued under the Environmental Planning and Assessment Act 1979, and the retail premises were closed and evacuated," a spokesperson for the council said.

"Further prosecution is now being considered, and compliance is actively being monitored with the assistance of NSW Police.

"From reducing fire hazards to preventing the illegal sale of unsafe tobacco products, these outcomes highlight the power of teamwork between agencies and the ongoing work behind the scenes to keep the Warrumbungle Shire a safe and fair place to live and do business."

Police also took part in the Wednesday raid on Dalgarno Street. [IMAGE: River McCrossen]

The investigation follows a raid on a separate operator at a premises on John Street, where NSW Health officers seized over 230 cartons of illegal tobacco, along with "several" kilos of loose-leaf and hundreds of vapes.

That operator was successfully prosecuted at Coonabarabran local court on 22 July.

The charges involved serious breaches of fire safety such as blocking fire exits and Unauthorised Development Consent by conducting works not in accordance with granted development consent.

The operator was fined a total $4,000 for a fire safety breach and development without consent, plus a 12-month community corrections order.

All seized tobacco products were forfeited to the Crown.

They were given a 25 per cent discount on their sentence for an early guilty plea.

Country Mayors Association chair Rick Firman said he is unaware of other councils taking a similar approach to premises where illicit tobacco is suspected of being sold.

"Perhaps we're not hearing about it, but this is the first occasion that I have heard," said Cr Firman, who is also the mayor of Temora Shire Council.

"Every man and their dog knows that they are not legitimate businesses, and they quite frankly have no place in our communities.

"I warmly applaud Warrumbungle Shire for doing what they legally can do to police any form of illegal activity. That's their job.

"I'll be talking to our General Manager about a similar thing."

He said other councils could follow Warrumbungle's lead.