About 12.30pm, emergency services responded to a crash on Lachlan Valley Way, about 20km south of Cowra.

Chifley Police District officers and NSW Ambulance Paramedics were told a 4WD, with a caravan attached, and a sedan had collided.

The 4WD was travelling south while the sedan was travelling north to Cowra.

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The 18-year-old female driver of the sedan died at the scene, while her 18-year-old male passenger and the two occupants of the other vehicle, aged 78 and 80, were all airlifted to Canberra Hospital in critical condition.

Chifley PD Inspector Adam Beard said investigations were ongoing, but it appeared the sedan was on the wrong side of the road at the time of the collision.

"At this stage, it appears as though the vehicle in which we have the deceased driver, that vehicle has veered into the oncoming traffic," he said.

"We are currently investigating how that may have come to occur."

The 18-year-old who died in the accident was from Orange, while her passenger was a man from Bathurst.

The driver of the 4WD was a man from Cowra, while his passenger was an 80-year-old woman from Erina.