The Ministry of Health confirmed on Wednesday it is reporting a case in the Hutt Valley area of the Wellington region, with a link established to the Lakes DHB area.
The case is self-isolating, and case interviews have identified a small number of household contacts, who are also isolating with testing arranged.
The council says given the high rate of transmission of the Delta variant, it will make its settings will be more restrictive.
Earlier in December, Mayor Wayne Guppy defended the council's decision to eschew vaccine passes – despite all other Wellington regional councils requiring them – telling the Herald it was about "organising life again".
"The region has very high vaccination rates – about 98 per cent first dose and 92 per cent double - so this is about getting people back, we're trying not to stay in that siege mentality and get back to normal as soon as possible."
Councillor Dylan Bentley told the Herald at the time he was flabbergasted by the decision and feared for the vulnerable members of the community.
"Our facilities are actually patronised mostly by those groups and by not having vax passes we're basically saying fair game anyone can go there doesn't matter if you're unvaccinated, which in my opinion is not sending the right signal to those who seriously can't get vaccinated for medical reasons and it's not protecting them."
He said on Thursday he fully support the Council's decision to require passes moving forward.
"I'm pleased to see the original decision by staff not to require passes has been reviewed...I fully support the council's new policy."