One passerby described the water as "green cordial" and said it resembled "radioactive stuff you see in superhero movies."
The bay along Hipwood Street in Kirribilli, near Milsons Park, turned bright green at about 3pm, baffling locals who have called the incident "unusual".
Firefighters said they were "alerted to a large spill of fluorescent green material flowing into the harbour". NSW Fire and Rescue has run several tests and said the water is not toxic and doesn't appear to be harming the environment.
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