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Police said they were called to the scene of the crash at the intersection of School Rd South and Gordon Rd about 3.15pm.
One person died at the scene. Another had serious injuries and was taken to hospital, police said.
A Fire and Emergency New Zealand spokesman said as a result of the crash one person had been trapped in their vehicle. Emergency services were called to extricate them.
Fire appliances from Lookout Point and Mosgiel attended, he said.
Diversions were in place and motorists were asked to avoid the area.
The Serious Crash Unit was at the scene yesterday.