For the third straight day, NSW has recorded 12 COVID-related deaths in the 24-hour reporting period.
The state also recorded 1284 new cases of COVID-19.
"Every day the statistics are given out in detail, but behind every death there is a family," NSW Premier Gladys Berejiklian said.
"It's a reminder of how sinister and deadly this virus is," Ms Berejiklian said.
Authorities reported that seven of the dozen fatalities were not vaccinated, two people had received one dose and three people were fully vaccinated.
Two people from western Sydney - a man in his 50s and a woman in her 80s - died at their homes and their COVID-19 infections were diagnosed after their deaths.
A woman in her 20s, a resident of the Life Without Barriers group home in Wyong, died at Gosford Hospital while three people who died were residents of aged care facilities in Dubbo.
There have been 222 COVID-19 related deaths in NSW since mid-June and 278 in total since the start of the pandemic.
NSW will begin a home quarantine trial, the Premier has announced.
Gladys Berejiklian revealed a trial run of travellers going into quarantine would begin "in the next couple of weeks".
"It's really opening the doors what home quarantine will look like for us moving forward," Ms Berejiklian said.
"For those returning Australians who have a double dose vaccinations, they will be able to consider having a home quarantine setting rather than having to be in a hotel."
The breakdown of the 1,284 locally acquired cases is:
- 429 from South Western Sydney Local Health District
- 322 are from Western Sydney
- 141 are from South Eastern Sydney
- 129 are from Sydney
- 60 are from Nepean Blue Mountains
- 36 are from Illawarra Shoalhaven
- 36 are from Northern Sydney
- 27 are from Central Coast
- 24 are from Hunter New England
- 17 are from Southern NSW
- 15 are from Western NSW
- five are from Far West
- one is from Murrumbidgee
- 11 are in correctional settings
- 31 cases are yet to be assigned.
The sewage surveillance program has detected fragments of the virus at Uralla, Gunnedah, Inverell as well as at sewage treatment plants in the Hunter Karuah area, Coffs Harbour, Cowra, Young and Narooma.