The Murrumbidgee Local Health District's 227 cases is the largest daily tally of the pandemic so far.

NSW Health confirmed the region's new peak in its daily update as the state recorded 23,131 new cases in the 24 hours to 8pm on Monday.

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It resets the record of 205 announced for the Murrumbidgee on Monday.

The local health district had, until mid-last month, largely held the virus at bay despite isolated outbreaks.

A total of 1420 people have tested positive for the virus across the region in the past four weeks.

With 428 cases found in the Wagga local government area in the same time period, the city and its surrounds account for more than 30 per cent of the health district's COVID caseload.

Government data indicates 98 Wagga residents were diagnosed with COVID-19 in the first two days of the year alone.

NSW's COVID-19 datasets show that 54 cases for the Wagga local government area were recorded on New Year's Day, and 44 more on Sunday.

Meanwhile, NSW Nurses and Midwives Association Wagga president Amit Gupta has claimed the new policy of allowing some COVID-19 close contact health workers back on shift will put staff and patients at risk.

"Nurses are part of the community so why do we have to work as close contacts when others in the community are ordered to stay at home?" he said.

"I don't know why the government can come up with this policy but when it comes to any incentives or pay rise, they say they don't have the budget for that."

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