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The local Bangor closure began at 18:00 BST on Saturday.
Bangor City entered a local lockdown from 18:00 BST on Saturday.
It means that some 16,000 people cannot enter or leave the area without a good reason, such as work or study.
Bangor’s restrictions will affect eight districts of the city: Garth, Hirael, Menai, Deiniol, Marchog, Glyder, Hendre and Dewi.
The city had seen a significant cluster of coronavirus cases and the incident rate is roughly 400 cases per 100,000 people.
It becomes the second area to face a local lockdown, while the rest of its county does not, after Llanelli in Carmarthenshire.
Discussions took place earlier, but it was decided not to extend the restrictions anywhere else in Gwynedd.
A spokeswoman for the Welsh government said: “We will continue to closely monitor the situation in Gwynedd and meet with the local authority and the leaders of neighboring local authorities earlier in the week to further discuss the developing situation.”
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The Bangor cases appear to be associated with young people and their student population, authorities have said.
Seventeen areas around Wales are now facing local lockdown restrictions, affecting more than two million people.
In North Wales all Conwy, Denbighshire, Flintshire and Wrexham counties are already closed.
The Welsh government said the cases in Bangor appeared to be closely associated with youth and the student population.
Bangor Student Union President Henry Williams said he was “working hard … to ensure students are aware of the new restrictions.” “We understand that this is a difficult time for all of us,” he said.
“We must continue to support each other to face what lies ahead.”
Meanwhile, the Department for Work and Pensions confirmed that its Bangor service center was temporarily closed on Friday due to the coronavirus, but that it would reopen on Monday.
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Tattoo artist Jules Lee says it’s “difficult” to get people to respect social distancing
Jules Lee, who runs a tattoo shop in Bangor, said it was “very difficult to get people to follow the rules” about social distancing.
“We have massive signs that say one person at a time, and the amount of time we will have to say ‘I’m sorry’ to them [because] three or four people come at the same time.
“It’s really uncomfortable. It’s hard to get people to comply,” he told BBC Radio Wales Breakfast.
Gwynedd council leader Dyfrig Siencyn said he appreciated that the closure would affect residents and businesses, but that steps should be taken to “avoid more stringent and disruptive measures in the future.” Mr. Siencyn said the situation was “serious” and was being closely monitored. “Simply put, there is no room for complacency of any Gwynedd resident,” he said.
“We must all play our role as individuals by following the national Covid-19 guidelines to protect ourselves, our loved ones and the community at large,” he said.
Meanwhile, Prime Minister Mark Drakeford defended the local restrictions in place in Conwy.
A letter from the council leader, Sam Rowlands, follows, requesting that some measures be lifted to help his tourism industry.
Drakeford said restricting travel to or from an area with increased infections in the community was “more likely to prevent uncontrolled spread to nearby areas.”
