Premier Gladys Berejiklian says NSW is well equipped to handle its COVID-19 "scare" after no new locally-acquired cases were recorded around Byron Bay.
NSW recorded one new local case in the 24 hours to 8pm on Wednesday - a man in his 20s who had already been flagged.
The man tested positive after sitting near a hens' party, which was attended by two infectious women from Queensland, at a Byron Bay pub last weekend.
His diagnosis sparked fears the virus was spreading in the community and led to the cancellation of the northern beach town's popular Bluesfest music festival this long weekend and the reintroduction of restrictions in four northern NSW councils.
Bluesfest was due to begin on Thursday with 16,000 revellers expected from all over the country for the five-day festival.
Meanwhile, a lockdown of the Greater Brisbane area ended at midday on Thursday after only one new case of community transmission was recorded in Queensland.
Ms Berejiklian said she hoped the cancellation of Bluesfest was just a "postponement", with talk the event could proceed later in the year.
Sydney's Royal Easter Show, which began on Thursday, won't be cancelled.
"We are confident that NSW is able to deal with the current scare that we have had," Ms Berejiklian told reporters on Thursday.
"We are confident (restrictions) won't really prevent businesses from staying open, it won't prevent people from doing what they would normally do.
"I know this is a huge downer for many businesses who hope to trade more readily over the Easter break, but the good news is they all remain open."
NSW has been mirroring Queensland Health's restrictions for anyone in NSW who has been to Brisbane since March 20.
Late on Wednesday, NSW Health issued new alerts for a gym in Lennox Head, 20 minutes south of Byron Bay, and the Suffolk Park Hotel/Motel just 10 minutes away.
Ms Berejiklian has promised the border will remain open and anyone returning from Queensland will be welcome but may need to isolate at home for three days.
She also discouraged those in the Ballina, Byron, Lismore and Tweed councils from leaving their local areas for the time being, but said it would not be policed.
The restrictions on those councils will remain in place until at least next Tuesday.
"Of course we always qualify that by saying pandemics are not predictable, you always have to be nimble," Ms Berejiklian said.
"But I am very confident about what Easter looks like for the vast majority of our citizens in NSW."
Bluesfest organisers on Wednesday said they were devastated to cancel the event.
"This is one of the most difficult statements I have ever had to make. We really wanted to be at the forefront of the return of live music at pre-COVID-19 level," director Peter Noble said in a statement.
"We feel deeply for everybody affected, the fans, the artists, and the hard-working Bluesfest team.
"But in the end, the health of our community must come first."
Australian Associated Press