Premier Daniel Andrews has pleaded for people to take isolation requirements seriously on the back of the numbers.
"If you're asked to isolate, it is incredibly important that you do that," he told reporters on Monday.
"There's no ducking down the shops or going and visiting someone. There's no room for error, there is literally no room for error, you have got to be isolating for the entirety of that 14-day period."
There are 494 active cases in the state, 29 people are in hospital including nine in intensive care, five of whom are on ventilators.
NSW has reported 818 new locally acquired cases of COVID-19 and three deaths.
A night-time curfew has come into effect for people living in Sydney's 12 local government areas where the virus is surging and a raft of new public health rules are in place, including the requirement for everyone in NSW to wear masks outside their homes unless exercising.
Premier Gladys Berejiklian says a record 738,000 people got vaccinated last week - a record for the state.
"An outstanding result. I want to thank everybody for coming forward. We are up to 5.9 million jabs in NSW," she said.
"I set a target of six million by the end of the month. We will be at least one week ahead of schedule," the premier said on Monday.