Police were called to the scene just after 4pm following reports a ute and sedan had collided head-on.

Seven crews from NSW Ambulance were also dispatched to the crash scene, about 85 kilometres south-west of Bathurst.

Chifley Police District commander, Superintendent Peter O'Brien, confirmed three people had lost their lives in the crash and said investigations were already under way to try and determine what had happened.

He said the crash occurred on the Mid Western Highway and Purcell Drive.

It is understood two people in the sedan died at the scene of the crash and one person in the ute had died. A crime scene has been established and diversions are in place for motorists.

Light vehicles travelling north are being diverted along Walli Road, Belubula Way and Werribe Road while heavy vehicles are being redirected along Binni Creek Road as they leave Cowra, to Belabula Way and rejoining the Mid Western Hwy at Mandurama.

For southbound traffic, light vehicles are being diverted along Werribee Road, Belubula Way and Walli Road while heavy vehicles are being redirected off the Mid Western Highway at Mandurama to travel along Belabula Way and Binni Creek Rd before rejoining the highway at Cowra.

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