Police allege the man was 13 times over the legal limit of 0.02 at the time.

According to an official statement, the male bus driver was on route to Canowindra when the incident occurred.

It is believed that two female passengers and about seven school aged children were on the bus at the time.

Two female passengers allegedly alighted from the bus at Cargo and contacted the police with concerns for the welfare of the remaining passengers.

Police from Canobolas Local Area Command attended and conducted a patrol of the surrounding area, before locating the bus travelling along Ferguson Street, Canowindra.

Officers stopped the bus and spoke with the driver.

A 50 year old Canowindra man was arrested at the scene and taken to Canowindra Police Station for questioning.

A breath test conducted by officers found that the man returned a blood alcohol reading of 0.265.

The man was subsequently charged with drive with high range PCA. He was issued with a field court attendance notice and his licence was suspended.

He will appear at Cowra Local Court on November 22, 2006.

No injuries were sustained during the incident.

Parents of the students involved declined to comment of the matter.

Owners of the bus driven by the man, Fisher's Bus Service, released a statement last week saying a replacement driver has been arranged to ensure the bus service continues as normal.