At least 500 civilians reportedly remain trapped in Ywar Thit town in Bawlakhe Township in the resistance stronghold of Kayah State after it was seized by junta troops on June 27.
Communication has been cut off and residents are forbidden from leaving the town, according to the Karenni Human Rights Group.
“The town has been under the control of junta infantry since June 27. No one is allowed to go in or out of the town,” a representative of the group said.
At least six people had been shot dead by junta forces since June 27, according to the rights group.
Most residents are taking refuge in a monastery.
“Fighting could resume at any time and the remaining civilians are in danger,” a volunteer said.
Ywar Thit had around 800 households and about 1,500 residents. Three nearby villages have emptied since last month.
Around 350 junta troops are stationed at Ywar Thit, a strategic town transporting military supplies to junta outposts near the Thai border.
There are reports of skirmishes near the town.
The Progressive Karenni People Force reported that around 27 people were killed by junta troops during a raid on Moebye town in southern Shan State on the Kayah State border.
At least 365 civilians have been killed in Kayah State since the 2021 coup, where civilians are frequently targeted by indiscriminate junta shelling and airstrikes, according to the resistance group.
The United Nations estimated that at least 96,000 people had been displaced in Kayah State by mid-June of a population of around 300,000.
However, aid groups on the ground reported that more than 270,000 people have been displaced in the state and neighbouring Pekon Township in southern Shan State.
Around 100,000 people are in need of urgent food supplies and healthcare assistance, according to aid groups.