A man in his 70s from Sydney's eastern suburbs died overnight after contracting Covid-19, according to chief health officer Kerry Chant.
A woman in her 90s from southwest Sydney died only two days ago after becoming infected.
In the community, 21 of the 89 new cases were infectious.
The outbreak in the state has already moved to the regions, with a case being discovered in Goulburn, roughly 200 kilometers south of Sydney.
The person who tested positive, according to the ABC, is a critical worker who traveled from southern Sydney to Goulburn.
The individual had been working on the new Goulburn Hospital's building.
In Goulburn, the Southern Local Health District is expanding its pop-up testing clinics.
Until now, the rapidly spreading NSW Covid-19 outbreak has been contained to Sydney and its environs.
Authorities had warned that if the virus spread to other parts of the country, it could be deadly.
Bob Kirk, Mayor of the Goulburn Mulwaree Council, believes Goulburn is especially vulnerable because it is located on a major roadway.
As a result of the positive case, Kirk believes the building site has been closed.
"With the current stay-at-home orders of course people can have work exemptions," he stated.
"Of course the Covid virus doesn't run around identifying who has a work exemption and who hasn't."
Greater Sydney, the Blue Mountains, Central Coast, Wollongong, and Shellharbour were not affected by the three-week lockdown placed on the Southern Highlands.
Outside of the lockdown, however, all regional districts have had to conform to a slew of social distancing rules.
The Queensland Premier indicated shortly after the latest positive case was reported that her government would most likely now consider Goulburn a hotspot.
This new example is also likely to raise Canberra's suspicions, as Goulburn is only about an hour's drive from Canberra, and many people commute between the two towns on a daily basis.