An unvaccinated man in his 30s with no significant underlying health conditions was one of seven COVID-19 deaths recorded in NSW, as the state nears its 90 per cent full vaccination rate.
The man, from southwestern Sydney, died at Royal North Shore Hospital.
The other six deaths include two women who died at an Albury aged care facility where they acquired their infections and a Sydney man in his 80s who died at Prince of Wales Hospital where he caught the virus.
The percentage of eligible people aged 16 and over with two vaccine doses is 89.9 per cent while 93.9 per cent have had at least one.
Premier Dominic Perrottet said reaching 90 per cent full vaccination would be "momentous".
"We're really getting back to normality here in NSW," he said.
"That's a testament to everybody right across the state going out and getting vaccinated."
NSW Health's Dr Jeremy McAnulty urged people to fully inoculate themselves.
"Remember, COVID has killed more than five million people internationally so please book in for your jab and book in for your booster if you're due for one," Dr McAnulty said in his update on Monday.
NSW recorded 187 new locally-acquired cases detected from 52,939 tests in the 24 hours to 8pm on Sunday.
More than half the cases were in areas outside of Sydney, with 40 in the Hunter New England health district alone and 25 in the Murrumbidgee region.
There were 87 cases in Sydney, mostly in the city's centre, southwest and southeast.
There are 264 cases in hospital with 48 in intensive care, 20 of whom are on ventilation.
Fully-vaccinated people can now gather in bigger numbers indoors and outdoors.
School children were allowed assemblies and excursions from Monday under the state's revised road map. Teachers who aren't fully vaccinated will be suspended.
NSW businesses now have density restrictions of one person for every two square metres and fully-vaccinated diners can book without number limits.
As many as 1000 people can gather outdoors while stadiums, racecourses, theme parks, zoos, cinemas and theatres can operate at 100 per cent of their fixed-seated capacity.
A parliamentary committee was told last week that about 4900 teachers had not yet advised the Education Department of their vaccination status.
All unvaccinated NSW residents will have to wait until December 15 or when the state reaches a 95 per cent double-vaccination to enjoy greater freedoms.
Sydney's mass vaccination hub at Qudos Bank Arena has been closed after delivering more than 360,000 vaccine doses since opening on August 9.
The arena will return to hosting sport and entertainment events.