The Durham Police Department says Gina Marie Watring, 40, had intercourse with the child on at least two occasions in April - the first, three weeks ago and a second last Tuesday. It would not comment about where the incidents happened.
A source told Eyewitness News the victim is a 10-year-old boy.
Watring faces two counts of first-degree sex offense with a student. Thursday, a judge refused to lower Watring's bond and left it set at $100,000.
According to search warrants in the case released Thursday afternoon, school administrators first became suspicious of Watring - who taught drama and dance at the school - after intercepting a note written by the boy.
"Gina, I love you so much babe. I’m so lucky to have you. I’m glad you feel the same way. I want to be with you forever. I’d never do anything to hurt u," it read.
According to the warrants, the school contacted the boy's mother who said Watring and the child had been communicating with each other via text message, and she had asked that the relationship stop because she thought it was inappropriate.
School officials said they found a cell phone in the child's possession, and text messages between him and Watring.
During questioning by detectives, the boy told them that he was in love with Watring and that they had had sex on two separate occasions in her home.
Creekside Elementary School is on Ephesus Church Road in south Durham. Watring is no longer listed in the school's online directory, but a description of her courses are still laid out for parents to see.
One parent who knows Watring - and didn't want to be identified - told Eyewitness News she was speechless and described Watring as a nice woman.
School officials say Watring started working at Creekside in November 2006. She is no longer working for the school as of Tuesday.
In court Thursday, Watring was represented by Steve Monks - a longtime family friend. Monks said he has not been retained by her as she can't afford it. Watring requested a public defender and told the judge that she and her husband have all their money invested in a restaurant.
Monks said Watring is married with children, and is active in Sunday school at church. He told Eyewitness News that Watring is innocent and that the case stems from "the infatuation of a 10-year-old boy."
"It's simple. The family is absolutely devastated," said Monks.