Haji Salam Khan, a provincial council member, said the blast killed seven civilians and wounded three others.
Omar Zwak, spokesman for the provincial governor, confirmed the attack but did not provide a toll.
No one immediately claimed responsibility.
The Taliban have a strong and growing presence in the area.
Elsewhere in Afghanistan, a mortar struck a market in the eastern Logar province, killing three civilians during a battle between Afghan security forces and the Taliban, said Salim Saleh, spokesman for the provincial governor.
He said seven other people were wounded.
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