Senior Constable Nick Fahy, of Albury highway patrol, said about 9.30am a car travelling east on Hovell Street failed to give way to a silver four wheel drive going south along Olive Street.

"As a result a collision has occurred, causing one vehicle to end up in the table drain in Hovell Street," he said.

NSW Fire and Rescue and NSW Ambulance attended, with the driver of the four wheel drive utility taken to hospital.

An ambulance spokeswoman said a woman aged in her 30s was taken to Albury hospital with neck and shoulder pain.

NSW Ambulance received the call at 9.18am.

Both cars were extensively damaged and had to be towed away, with onlookers watching as the utility was winched from the drain.

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Senior Constable Fahy said investigations were continuing, but it appeared the driver on Hovell Street was at fault and would receive an infringement notice

"All inquiries indicate that she's failed to give way at this stage," he said.

"Lucky with the time of the day and location, there's not too much traffic about."

He noted the vehicle in the drain stayed upright.

"If it had landed on its roof, there's water in the drain, it might have been a different outcome," he said.

"So all parties very lucky."