The incident, the latest to affect the Shropshire's health system, was declared on Friday and is ongoing, according to NHS Shropshire, Telford and Wrekin.
Health bosses said the situation is a result of "continued and unprecedented pressure on its services".
They said that it had been caused by "relatively high numbers of patients in hospital and community beds with Covid-19", a high level of staff sickness, and a high number of people attending hospitals.
NHS Shropshire, Telford and Wrekin, said that the incident status is "under constant review".
The situation means all areas of the county's NHS are under such levels of pressure that non-urgent appointments are cancelled, to prioritise emergency treatment.
Figures from the government show that Shrewsbury and Telford Hospital NHS Trust (SaTH) was caring for 90 coronavirus patients in hospital as of Tuesday, August 9.
NHS England data shows the number was up from 81 on the same day the previous week.
The number of beds at SaTH occupied by people who tested positive for Covid-19 decreased by 17 per cent in the last four weeks – 28 days ago, there were 108.
Across England there were 8,624 people in hospital with Covid as of August 9, with 233 of them in mechanical ventilation beds.
The number of Covid-19 patients hospitalised nationally has decreased by 37 per cent in the last four weeks, while the number on mechanical ventilators has decreased by 12 per cent.
The figures also show that 84 new Covid patients were admitted to hospital in Shrewsbury and Telford Hospital NHS Trust in the week to August 7. This was up from 74 in the previous seven days.