NSW Premier Gladys Berejiklian said on Thursday that the COVID-19 stay-at-home orders, originally described as a snap seven-day lockdown from Saturday, would be extended to August 28.

NSW yesterday recorded new peak of 681 cases in a 24-hour period and Ms Berejiklian pointed to the fact that 25 of those new infections were recorded in western NSW as a reason to extend the regional lockdown.

"There are vast areas of regional NSW where they are not any cases, but everybody would appreciate and expect us to take a precautionary response," she said.

Wagga mayor Greg Conkey said the announcement was not a surprise and he was concerned that another week might not be long enough to have an effect on the virus's spread.

"It's having a devastating effect on our economy, our retail areas in particular is finding it difficult at the moment and I understand their situation," he said.

"I haven't heard of any cases here in this city and I hope it remains that way...Police are being very vigilant about [stopping people travelling], and rightly so.

"If people abide by the rules then that's good for rural and regional NSW."

Murrumbidgee Local Health District recorded zero cases from 27,574 tests over the past four weeks, including 8694 tests in Wagga, and there has been no COVID-19 detected in sewage.

Cr Conkey said the Wagga council had this week had a meeting with welfare groups and the Red Cross.

"We talked about how we are going to help those less fortunate in the community...hopefully we can control the situation as best we can," he said.

Wagga Business Chamber business manager Serena Hardwick said it had been difficult for some businesses in the city to adapt to operating during the lockdown.

"I was talking to a business this morning and they said they would look at alternative services, depending on how much the lockdown was extended," she said.

"It's just an uncertain time for them; a seven-day extension to the lockdown is one thing but we just don't know whether it will be extended beyond that.

"Businesses have had to stand down staff and limit hours of operation regardless of whether they are allowed to open or not."

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Independent Wagga MP Joe McGirr said he supported extending the lockdown.

"There is no doubt that the current restrictions on our community are frustrating. They are having a substantial impact on many people including businesses, families with school children, those with a loved one in hospital or aged care and many others. It really is distressing," he said.

"However, this highly infectious virus travels when people travel, so to slow the spread of the virus we do have to stop people's movements as much as possible.

"The previous strategy of addressing the spread has not worked. Trying to work Local Government Area by Local Government Area has just not been effective. The messaging has been unnecessarily complex and confusing."

Business NSW Murray-Riverina regional manager Anthony McFarlane said the region was already suffering from a downturn due to the delta variant outbreak in Sydney and the Victoria border restrictions.

"Extending the lockdown for another week in regional NSW is a blow for businesses big and small right across our region," he said.

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