NSW Premier Gladys Berejiklian said at least 60 of those were infectious in the community.
“I anticipate, given the large number of cases we have had in the last few days, unfortunately this trend will continue for at least the next few days,” Ms Berejiklian said.
“It means all of us have to work harder to make sure we start and follow the rules.”
NSW Health said 128,000 tests were conducted.
Two people have died with coronavirus overnight.
One woman died at home in southwestern Sydney. The woman in her 40s had not been vaccinated.
The woman in her 40s who died in Sydney’s south-west was a close contact of a confirmed case, Deputy Chief Health Officer Dr Marianne Gale has said.
“She tested positive on August 7 and wasn’t vaccinated, and the local health district will be investigating her death, and also be referring it to the coroner,” she said.
“Again, our sincere, heartfelt condolences to her family.”
The second death was a man in the Hunter New England region. The man in his late 90s was fully vaccinated by was in palliative care.
There are 391 cases in hospital in NSW, with 63 in intensive care and 30 requiring ventilation.
In the ICU, four are in their 20s, six are in their 30s, five in their 40s and 15 in their 50s.
Of the 63 in intensive care, 55 are not vaccinated at all.
The regional city of Dubbo has recorded 25 cases. Five additional cases were also recorded in the Hunter New England area.
Traces of coronavirus have been detected in sewage in Bathurst, Parkes and Bourke.
No new cases were recorded in Armidale, Tamworth and the Northern Rivers.
Ms Berejiklian said case numbers were stabilising in the Fairfield and Canterbury-Bankstown region, but were on the rise in Blacktown and Mount Druitt.
“We are really wanting to make sure that people living in Blacktown and Mount Druitt and those adjoining suburbs come forward for testing and stay home,” she said.
“If they haven’t already got vaccinated, and they don’t have symptoms, come forward and get vaccinated.”
Health Minister Brad Hazzard is especially concerned about the rising number of cases in Walgett, in outback NSW.
“The ICU in a hospital in a place like that is nowhere near what we would expect in Sydney,” he said.
“Don’t go out unless you absolutely crucially have to.”
Additional Pfizer vaccines are being flown into Walgett.
Mr Hazzard denied all of NSW would go into a state-wide lockdown tonight.
“What we want to achieve in September and October is provide some opportunities for people to have extra things they can do, which they currently can’t do today,” she said.
“I don’t want to give the impression that it will be freedom all round.
“It will not be freedom all round until it is 70 per cent double doses, at least, and 80 per cent is when we learn to live with COVID.”
Southeast on a knife’s edge
Australia’s south-east is on a ‘knife edge’ as the Delta variant spreads, a top infectious diseases expert has warned.
Ninety per cent of New South Wales is now in lockdown and health expert Jane Halton said more of the country will be put at risk unless transmissions are curbed.
“This is literally sitting on a knife edge. We are watching, for example, around Dubbo and some of our Aboriginal communities the real risk that this virus is going to get in there and that will be terrible consequences,” Dr Halton told Today.
The Chair of the Coalition for Epidemic Preparedness said the majority of people in virus-stricken New South Wales were following stay-at-home orders but unless more people curb their movements the consequences would be terrible.
“We just heard the politicians warning us that we could have thousands of deaths and we know that. We have see seen the Doherty modelling. We know that if this runs in the community without people being vaccinated that is what will happen.”