Shropshire Council announced restriction, monitoring and surveillance zones for an area just outside Bishop's Castle after the disease was discovered in a poultry flock.
The council is asking residents and businesses who house birds to remain on alert for any signs of disease and report any cases of suspected disease immediately.
It has also asked people to ensure "good levels of biosecurity at their premises".
The council has said that people should be on the lookout for 'unusual quietness, decreased activity levels' from birds.
Signs include 'decreased levels of vocalisation', 'decreased levels of feed and water consumption', and 'decreased egg production'.
Due to outbreaks of bird flu across the country it is a legal requirement that all flocks, private or commercial, are kept indoors.
People who are concerned about the health of their animals are advised to contact their vet.
For more information about bird flu and biosecurity visit gov.uk/guidance/avian-influenza-bird-flu or phone to report any of the above symptoms in birds on 03459 33 55 77 for the Defra Helpline.