Katherine's lockout will be lifted at midday after two people from the Katherine cluster tested positive to COVID-19 in quarantine.
Health Minister Natasha Fyles announced that two people had tested positive to COVID-19 in the last 24 hours, both of whom are close contacts of a three-year-old girl who tested positive to the virus earlier this week.
One is the girl's mother and another is an infant.
The infected woman and her daughter remain in Royal Darwin Hospital and the infant is in The Centre for National Resilience quarantine facility in Howard Springs.
All three of the new cases are from the Katherine East area, with a total of 31 close contacts of the three-year-old being identified.
Ms Fyles said 18 of the 31 contacts have now returned negative results.
The new infections bring the current outbreak to 63 cases with more infections linked to the three-year-old expected.
Wastewater tests from the Katherine area have weakened overnight.
"It looks like we've identified these cases and with those people no longer being in that catchment we're seeing it reduce," Health Minister Natasha Fyles told reporters on Wednesday.
As Acting Chief Health Officer Dr Charles Pain indicated on Tuesday, the town's lockout will be lifted as no new cases have been recorded from outside the existing contacts.
"We thank the residents of Katherine, they've done a fantastic job," Ms Fyles said.
"I know that it has been a long period of time that they have been locked down and locked out. It certainly has been vital to us containing this virus as best we can."
Vaccination rates in Katherine have surpassed 80 per cent double-dosed according to NT Health.
The NT government has been criticised over the method it uses to calculate the territory's vaccination rate.
Its figures are routinely about 10 per cent higher than Commonwealth data for the same locations.
This is because the NT records jabs in arms, which includes travellers, as opposed to the Commonwealth, which uses the accepted Medicare address method.
Ms Fyles said she had confidence in the NT's process but acknowledged the data may not be accurate.
Chief Health Officer Charles Pain said the discrepancy between the two data sets doesn't matter because under the Commonwealth's method the NT was about to surpass the 80 per cent double-vaccinated rate.
"Our figures are higher than that, we're certainly very confident (the actual rate) is between those two numbers," he said.
Australian Associated Press
The Katherine Times has removed the paywall from our stories relating to health warnings and safety of the community in regards to the coronavirus. However, we depend on subscription revenue to support our journalism. If you are able, please subscribe here. If you are already a subscriber, thank you for your support.