Cases of COVID-19 continue to spread across regional NSW particularly on the coasts north and south of Greater Sydney while a handful of other regions enjoy a second day of freedom.

At least 115 of the 1262 cases reported on Sunday were detected in regional local health districts including 53 in the Illawarra Shoalhaven region, 33 on the Central Coast and seven in the Hunter New England area.

There were 14 new cases in Western NSW, nine of which were in Dubbo, where local MP Dugald Saunders said around 2800 tests had been conducted in the previous 24 hours.

Mr Saunders said there was a "little ray of sunshine" coming on Monday when up to five fully vaccinated residents across the state outside of the government areas of concern will be allowed to gather outdoors.

"This is not an opportunity to meet in large groups and hug and kiss and carry on ," Mr Saunders said on Sunday.

"This is a chance for families and friends to socialise in a responsible way."

There were five cases in the Far West Local Health District where Broken Hill Mayor Darriea Turley has urged residents to get vaccinated and stay home.

"I'm really worried about what will happen in the next couple of weeks and what is the big picture and I think good public health policy needs to shine through," Ms Turley told ABC News on Sunday morning.

There were also three COVID-19 cases reported on the Mid North Coast.

Elsewhere, thousands of NSW residents across the state's northeast and southwest enjoyed their second day of freedom in weeks on Sunday after stay-at-home restrictions lifted on Saturday for regional centres including Coffs Harbour, Wagga Wagga and Albury.

Masks are mandatory at indoor public venues, but hospitality, retail and sporting spots have all been cleared to reopen with restrictions while rules for indoor and outdoor gatherings have been relaxed with limits.

NSW Health has detected fragments of the virus that causes COVID-19 at the Moruya, Port Macquarie, Trangie, Young, Brooklyn, Gerroa, Eden, Yass, Karuah, Tamworth, Dunbogan, and Dungog sewage treatment plants.