A low-risk strain of bird flu has been found at a smallholding near St Helens in Merseyside.
A restriction zone has been placed around the area following the positive tests for the disease.
Some of the infected chickens had been bought from a market held in Chelford that was associated with a recent bird flu outbreak in north Wales.
All the farm's birds, including peacocks, have been culled. The strain is not thought to pose a human risk.
Low pathogenic avian influenza typically causes little or no clinical symptoms in infected birds.
Fred Landeg, deputy chief veterinary officer for the Department for Environment, Food and Rural Affairs (Defra) said: "The tests were carried out as part of the normal tracings activity which is under way following the outbreak in Wales.
Restricted zone
"This is an extensive exercise, and this is the only premises to date with evidence of infection."
The birds included 20 chickens, three ducks, three peacocks and some peacock chicks.
A restricted zone extends 1km from the holding, which is thought to be in Rainhill, near St Helens.
People are forbidden from moving poultry or any sort of live birds or eggs through this zone.
The two people who live on the smallholding have been testing for the disease after exhibiting flu-like symptoms but results came back negative.
The animal health department is tracing movements and contacts.
Defra is working closely with the Health Protection Agency on all potential human health aspects.
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