NSW has crashed through the 60 per cent one-shot vaccination rate and enjoyed a slight dip in daily cases.
But Chief Health Officer Kerry Chant has reminded the public "we are here for the long haul" while pressing vaccination "equity" so vulnerable communities including essential workers are protected.
The state reported 753 new local COVID-19 cases on Tuesday, down on the three-day average of 824.
Most cases remain in western and southwestern Sydney (516) while outbreaks in western NSW grew by 50 infections.
Dr Chant dismissed suggestions NSW may have seen the peak of its third wave, while acknowledging the tireless work of health and other government workers.
"I'd love to believe that we are on the trend down. That would give me joy ... but one day is not a trend," she said.
Daily cases are still disproportionately among unvaccinated groups, including young people.
About three in four cases since Friday are among those aged under 40, including 404 infections in children aged under 10.
Meanwhile, parents and workers have called for more transparency on childcare outbreaks after NSW Health told AAP 121 cases since June had been linked to centres.
For the first time in two weeks, no new deaths were reported in the 24-hour reporting period.
But NSW Health late on Tuesday confirmed a western Sydney woman, aged 30, had died at her home in Emerton, taking the toll for NSW's current outbreak to 75.
Attention on Tuesday turned to the relaxation of some restrictions for vaccinated people after the six-millionth jab was administered.
About 60 per cent of residents aged 16 or older have had at least one shot, with 32 per cent now fully vaccinated.
While thanking all who'd stepped up to get vaccinated, Dr Chant singled out western and southwestern Sydney communities for turning out recently in large numbers despite them taking the brunt of the lockdown.
But she said shots needed time to take effect and an impact on transmission wouldn't show up in daily case figures for two to three weeks.
High vaccination rates would eventually slow the spread, which currently leads every 10 positive cases to infect 13 others.
"We are seeing some impact from vaccines given three weeks ago," Dr Chant said.
Even with high rates, Dr Chant warned masks could be required in some environments for years to come.
"The world is grappling with how we co-exist with COVID and this virus may throw us curve balls. We have the Delta variant - God help us if we have another variant," Dr Chant said.
Premier Gladys Berejiklian said she was "deeply grateful" for increasingly vaccination rates and promised to restore some freedoms to the 2.1 million people who are fully vaccinated.
But she declined to detail what the changes could be or whether they will apply to hotspot areas including Blacktown and Canterbury-Bankstown.
The chief psychiatrist and Dr Chant will be asked for advice before measures are announced on Thursday or Friday.
Business NSW chief executive Daniel Hunter suggested the government consider easing restrictions on outdoor dining or retail in specific areas.
"There is a lot that can be done in a COVID-safe way, particularly if staff and customers are vaccinated," he told AAP.
Meanwhile, the NSW economy is estimated to contract about 10 per cent in the September quarter as a result of lost revenue and other economic impacts caused by the lockdown.
AMP Captial Chief Economist Shane Oliver said some spending would flow once restrictions ease. However, other spending - such as on haircuts - has been lost forever.
NSW is currently treating 608 COVID-19 patients in hospitals, with 107 people in intensive care and 34 on a ventilator - all higher than the day prior.
In western NSW, where Narromine Hospital has been converted into a COVID-19 hospital, 50 cases were recorded including 23 in Dubbo and five in Parkes.
