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I've seen this wording misconstrued by many people (not here on WS) and understandably so as it is not clear. It could be taken as all 20 people lived in the Benaroon Dr neighbourhood which is not correct at all. They live in the Kendall area which takes in towns and communities within half an hr drive of Kendall.
I guess it depends which article you want to take as giving the correct info. Whether it is in Kendall itself (population 1,200 people) or includes surrounding areas. The known sex offenders in the entire area could easily number more than 20, as horrible as that is to think about.
A Current Affair reported that about 20 registered sex offenders were living in the surrounding area of Kendall where Tyrrell went missing.
https://en.wikipedia.org/wiki/Disappearance_of_William_Tyrrell
Kendall has a population of only about 1,200 ....
http://www.abc.net.au/radionational...-survives-and-thrives-despite-tragedy/7904620
The thing that disturbs me is that every home was not able to be searched.