Port Macquarie and Muswellbrook in NSW have been placed into lockdown for one week while the areas of Tweed, Byron Shire and Kempsey will open up from midnight.
Health Minister Brad Hazzard earlier flagged Port Macquarie on the mid-north coast and Muswellbrook in the Hunter were areas of concern.
Both LGAs will enter lockdown for seven days from 6pm on Tuesday, due to an increased risk of COVID-19 transmissions.
Kempsey residents in the state's north were also warned of the persisting threat and have been told to remain "particularly vigilant" in case of another lockdown.
Mr Hazzard made an announcement earlier in the day to give communities notice of the potential impending lockdown.
"In the meantime, my strong advice as health minister ... is go out and get vaccinated," he said.
"Every part of NSW, every community, needs to understand there's only one path out of this and that is vaccinations."
Kempsey was locked down last week after a person working on a reality TV show in the region visited numerous venues while infectious with COVID-19.
Mr Hazzard thanked the Tweed and Byron communities for complying with the conditions of their seven-day lockdown.
"Thankfully we've had no further cases of concern, so the public health team have advised that they can come out of lockdown," he said.
Those LGAs would continue to operate under some restrictions to ensure community safety.
Stay-at-home orders also apply to anyone who visited the Port Macquarie and Muswellbrook areas on September 17 and September 22.
On Monday night, it was announced Cowra in the central west would remain in lockdown for another week due to the ongoing risk of COVID-19 transmissions.
Stay-at-home orders for Yass Valley lifted on Tuesday as scheduled.
Of the seven people who died in the 24 hours to 8pm on Monday, one was an unvaccinated man in his 40s from Dubbo.
Of the 863 locally acquired cases: 63 are from Hunter New England, 62 are from the Illawarra Shoalhaven, 53 are from Nepean Blue Mountains, 29 are from the Central Coast, 21 are from western NSW, 14 are from southern NSW and five are from the far west.
Australian Associated Press