NSW recorded 1351 new locally acquired Covid-19 infections in the 24 hours to 8pm yesterday.
Another 12 deaths in the reporting period, 10 of whom were not vaccinated, brought the number of deaths from the state's Delta outbreak above 200 since it began in June.
Eleven died in hospitals and one, a woman in her 60s from south-western Sydney, died at home.
The youngest person to die was a man in his 40s from Western Sydney.
One of the people to die was a man in his 90s who was a resident at the Hardi Aged Care facility in Guildford, who was infected at the nursing home.
There have now been two deaths linked to the facility.
NSW deputy chief health officer Marianne Gale said a woman in her 80s who died yesterday had "significant" underlying health conditions.
"This lady had tested negative for Covid-19 in recent days," she said.
"However, she was also in contact with people who did have COVID-19 so the circumstances of her death are being further investigated by the coroner."
The local government areas (LGAs) of Lismore, in the north-east of the state, and Albury, in southern NSW will go into lockdown from 6pm today after recording new Covid-19 cases.
The lockdown is expected to last for at least seven days but is contingent on high testing rates, Health Minister Brad Hazzard warned.
"More often than not, [NSW] Health determines it will be 14 days but at this case, looking at the issues, Health has determined that seven days will be appropriate but I'm just warning the community that it may be longer," Hazzard said.
"We need everybody in those two communities with any symptoms at all to come forward and get tested because that will allow Health to make well structured decisions based on the information available."
Dr Gale said there were two Covid-19 cases in Albury that were still under investigation but may have links to Sydney.
She said the two cases appear to be unrelated to each other and there were now a number of exposure sites in the Albury area.
There was one infection in Lismore and Deputy Premier John Barilaro said it was related to an adult who returned to the area with her child.
The re-imposed lockdown for these areas applies to anyone who has been in Albury since 10 September and Lismore since 7 September.
Meanwhile, the following regional LGAs will come out of lockdown from 1pm today: Bega Valley, Blayney, Bogan, Cabonne, Dungog, Forbes, Muswellbrook, Narrabri, Parkes, Singleton, Snowy Monaro and Upper Hunter Shire LGAs.
Barilaro said it was a "good day" for rural and regional NSW but all mobility must still be minimised.
The end of stay at home orders means these areas can now enjoy relaxed restrictions around in-home gatherings, hospitality, retail, major events and school will also resume.