A toddler who was struck and killed by a freight train was “playing” when the tragic incident happened, NSW Police revealed.

The one-year-old girl was with other children in the tiny regional NSW town of Baan Baa, population 200, on Friday night.

NSW Police Superintendent David Cooper said the child’s parents were not in the immediate vicinity.

“But we are aware of where the parents were, and the supervision of the child is not in doubt,” Cooper said on Saturday (AEDT).

“We can establish at this stage that the child was with a number of other children, but those circumstances are still under investigation,” he said.

“Our understanding is that the child was just playing; this is a really tragic case of a child that had gone to play in a bad location.”

Cooper said a number of people witnessed the shocking incident from a nearby commercial premises.

He said the boom gates and lights did activate as the unladen freight train approached the railway crossing.

“I want to highlight that this is nothing but an absolute tragedy and our heartfelt condolences go out to the family,” he said.

“This will have a broad impact on the community, and we want to make sure everybody gets the support they need.

“I can only imagine the horror and grief that they [the family] are in at the moment.”

Children were ‘playing’ near the train tracks when the girl was ‘clipped’. Photo: Google Maps

The train driver didn’t realise what had happened until he was stopped about 20 kilometres away.

The 22-year-old man underwent mandatory testing in hospital, which was a legislative requirement after such an accident.

“There’s no suggestion at all that the train driver had any negligence, it is just part of the process that has to be undertaken,” Cooper said.

“There is no suggestion that any charges will be laid. I feel for that young man as well.”

Narrabri Shire Council mayor Darrell Tiemens said he believed the young family had just moved to the area.

Tiemens said it was a tragic scene when emergency services responded to calls for help.

“Many of these emergency services workers have kids at that age as well, and for them to have to deal with the consequences of this tragedy, it’s hard to describe,” he said.

“Our hearts go out, obviously, to the family of the little girl tragically lost … it’s a devastating event and really deeply affected our close-knit community of Baan Baa,” he said.

“If this happened in a suburb of Sydney it would be tough, but when it happens in a tiny village where everyone knows everyone, it’s really hard to take,” he said.

“It’s an incredible community … they will rebuild but at the moment it’s just a matter for us all getting over the shock.”