NSW recorded 210 locally acquired COVID-19 cases in the 24 hours to 8:00 pm yesterday.
Health authorities have also recorded another death linked to the virus, a man in his 60s in southwest Sydney.
He died at home.
He is the state's 70th COVID-19 fatality and the 14 of this Delta outbreak which began on June 16.
Of today's new cases, 21 were infectious while in the community, 11 were in isolation for part of their infectious period and the isolation status of 120 remains under investigation.
Only 88 of the 210 new cases were linked to a known case or cluster.
NSW Health Minister Brad Hazzard said a majority of today's new cases continue to come from Sydney's southwest and west.
He said small businesses continue to be the epicentre of new outbreaks.
"We are seeing the problems in the smaller shops, smaller food shops, and smaller distribution areas," he said.
"We're not seeing outbreaks in … major grocery retailers, in particular, are managing the situation very well."
As an example, the health minister said a pizza shop in Belmore had nine of its employees test positive.
Mr. Hazzard said the climbing figures were putting stress on the state's health system, with 203 COVID-19 cases now in hospital.
Of those, 53 are in intensive care and 27 are on ventilators.
"[This] tells us that is an extremely serious disease and people are ending up in our hospitals in substantial numbers," Mr. Hazzard said.
"That is a concern for those individuals and also the health staff who are caring for them."
He said six of the people in intensive care are in their 20s and overall most of the ICU patients were in their 50s or under.
"It is the younger people who are actually taking up places in our intensive care units in our hospitals," Mr. Hazzard said.
There have been 3,190 locally-acquired cases since the the first case in the Bondi cluster was reported.