Kareem Atal, the director of Helmand's provincial council, said that battles between government forces and militants have been raging in the Kanashin district since late Friday, when the Taliban took control.
The fighting has spread north to other districts, where militants are targeting checkpoints and have killed at least seven policemen, he said.
The police and government compounds in the Nad Ali district have been surrounded by insurgents, Atal said. Taliban fighters are also trying to close key highways across the province.
The fall of Kanashin and the subsequent threats to other districts were the result of a "lack of coordination among Afghan forces," Atal said, adding "The Afghan national army is not doing their job."
Atal's deputy Abdul Majeed Akhonzada earlier said that the Taliban were now in control of 60 per cent of Helmand province, after about six months of fighting.
Helmand is a key opium producing and smuggling region. About 90 per cent of the world's heroin is produced from Helmand opium, which is largely controlled by the Taliban for funding their war.
The governor's spokesman Mohammad Reza Ghafoori said Afghan security forces were waiting for airstrike backup. He said the insurgents' ranks included Pakistanis, Uzbeks and Chechens.
Four Afghan security forces personnel have been killed, and another three wounded, he said.
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