A dozen suburbs in the western Sydney council area of Penrith have been included in the government's "areas of concern" for COVID-19 transmission as daily NSW infections remain high.
NSW recorded 262 new local COVID-19 cases in the 24 hours to 8pm on Saturday, at least 72 of which in the community while infectious.
An unvaccinated woman in her 80s at the Wyoming Nursing Home in Summer Hill has died after catching the virus.
Premier Gladys Berejiklian on Sunday said 12 suburbs in the Penrith local government area would join eight western and southwestern Sydney council areas as COVID-19 areas of concern.
The suburbs include Caddens, Claremont Meadows, Colyton, Erskine Park, Kemps Creek, Kingswood, Mount Vernon, North St Marys, Orchard Hills, Oxley Park, St Clair and St Marys.
People in these suburbs can only leave the council area if they are authorised workers. They are also limited to shopping and exercising within 5km of home and must wear masks outside.
There are 129 active COVID-19 cases in the Penrith council area.
"They are suburbs which (have) boundaries to those eight local government areas and we want to make sure we stem the tide of the virus seeping into additional communities," Ms Berejiklian said.
However the Georges River council area may soon be removed as an area of concern given its low number of new infections.
Greater Sydney and its surrounding regions are in lockdown until at least August 28 as health authorities battle to contain a outbreak of the virulent Delta COVID-19 strain. The Hunter and Armidale regions are also enduring snap seven-day lockdowns.
There are 58 patients in NSW in intensive care, with 24 ventilated. Of those 58, none had been fully vaccinated.
Meanwhile, hundreds of young adults in Sydney have waited hours to receive an AstraZeneca jab as the outbreak drags on.
As Health Minister Brad Hazzard on Saturday urged people to get vaccinated, hundreds flocked to a walk-in clinic in Glebe.
NSW Health brought on eight extra vaccinators throughout the day to help shorten a queue running more than 100 metres. About 1000 people were vaccinated at the site over three days.
Almost 46 per cent of NSW residents over 16 have had at least one vaccine dose, up from 40.95 per cent a week ago.
Almost 23 per cent of eligible residents are fully vaccinated.
Ms Berejiklian on Sunday reiterated that vaccination was the primary means by which to bring the pandemic to an end.
She also contradicted Prime Minister Scott Morrison's pre-outbreak comments that the vaccination program was "not a race".
Mr Morrison's government is responsible for Australia's vaccination program, which is among the slowest in the developed world.
"We are keen to really sprint. This is a race," Ms Berejiklian said.
"Not only does (the vaccine) keep people out of hospital, it also prevents the virus spreading, prevents people getting the virus."
While NSW could not consider returning to pre-pandemic freedoms until it reached 70 per cent vaccination coverage, Ms Berejiklian said some restrictions could be eased with a 50 per cent rate.
Her government hopes to hit six million jabs by month's end, which would require administering an average of 65,000 jabs each day.
"It doesn't mean we'll return to pre-outbreak conditions - it means September can be a month where we have greater freedom," she said.
"There are two things conditional on that - making sure that we keep case numbers as low as possible, plus we keep vaccinating.
"We know in the future, freedom relies on vaccination."
Australian Associated Press