About 11.20pm (Wednesday 15 July 2015), the 35-year-old woman left Hurstville Railway Station and began walking along Dora Street when she crossed Dalcassia Street.
At this time, she noticed a man walking on the other side of the road.
Police have been told the man then ran towards the woman, armed with a knife, before demanding her handbag when he reached her.
The woman complied, and the man ran from the scene. The woman was uninjured during the incident and alerted a passerby.
Officers attached to St George Local Area Command were called and commenced investigations.
As they continue their inquiries, police would like to speak to any witnesses or anyone with information on the incident.