Four people contracted Covid-19 after a person with the virus visited a patient at Dunedin Public Hospital.
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Southern District Health Board said four confirmed Covid-19 cases have been connected to the exposure event - an infection discovered on Ward 7c.
It is closed to visitors as patients undergo PCR tests.
All confirmed cases were in the same room, and no staff have tested positive.
The visitor was asymptomatic and isolated at home upon developing symptoms.
Surveillance testing will continue for staff and patients and there will be no further admissions to this ward.
The health board said this outbreak is not linked to a recently reported ICU death.
Southern DHB apologised for the inconvenience to visitors and the patients of ward 7c, but it was necessary to close the ward to maintain good infection and prevention control, and to minimise any further Covid-19 spread within the hospital.
Affected patients and their whānau are being kept informed of the situation.