The Government has moved Donegal and two other border counties to Level 4 of the Living with Covid Plan.
Along with Monaghan and Cavan, Donegal will remain in Level 4 until November 10th.
The Cabinet has agreed a nationwide ban on visits to households in almost all circumstances.
Under Level 4, no visitors are permitted to homes and indoor gatherings and events are banned, wet pubs are allowed to remain open, but limited to a maximum of 15 people, and only outdoors.
A memo brought to the Cabinet this evening recommends that the steps be taken after concerns about rising numbers of infection in the Border region and the North.
Earlier today the NOrth introduced its own lockdown which will see schools close for three weeks from Friday.
No schools in Donegal, Cavan or Monaghan will close despite the Level 4 introduction.
Reacting to the news, Letterkenny Chamber said the Government had let off an “economic bombshell.”
“The Government has dropped an economic bombshell on Donegal tonight, the negative economic consequences will be huge especially with retail across the border being left open whilst in Donegal shuts down,” tweeted the Chamber.