Premier Gladys Berejiklian has announced that NSW will be open to Victorians from November 23.
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Confirming reports that people would soon be able to travel freely between the two states, Ms Berejiklian said on Wednesday morning that she had met with Victorian Premier Daniel Andrews and the Prime Minister to make a decision on the opening of the border.
It has been closed since early July.
Victoria recorded its fifth consecutive day of no new community COVID-19 cases and zero deaths on Wednesday.
Ms Berejiklian warned the opening - which she said will make NSW the only state or territory in Australia to be open to all residents, as well as New Zealanders - "comes with some level of risk" but that the state was confident it could manage these risks.
"We know that once you ease restrictions that you're likely to get cases, but it's how you manage these cases," she said.
"We are confident our health system and the processes we have in place in NSW will allow that to happen."
The move will also free up police and health staff who have been guarding the border to be deployed elsewhere where needed, she said.
She said she was making the announcement now to give people - and businesses such as airlines - ample notice, so they can make plans ahead of Christmas.
While NSW will continue to monitor Victorian COVID-19 cases between now and the opening date, she said it was unlikely that the decision to re-open the border would be reversed.
Ms Berejiklian also announced on Wednesday that, from November 23, the use of QR codes will be compulsory for all hospitality businesses.
"There is no reason why in the next three weeks, that all businesses shouldn't have QR codes," she said.
Overnight, there were three local cases of COVID-19 identified in NSW, however Ms Berejiklian noted they were all household contacts of existing cases and have all been all in isolation.
Six people in hotel quarantine have also been diagnosed with the virus in the 24 hours to 8pm on Tuesday.
NSW Health said all three local cases were linked to the Hoxton Park cluster, which now totals 10 cases:
Two cases - a child and an adult - attended Flip Out Prestons Indoor Trampoline Park and are household contacts of a previously reported case who also attended the park. Both were already in isolation, having been identified as close contacts.
One child attended the Bambino's Kindergarten Horningsea Park, where a previously reported case also attended. The child had already been in isolation, having been identified as a close contact.
Additionally, a previously reported case travelled on the Fairfield to Central train on, October 27 at 11.38am - 12.40pm, and then back from Central Train Station to Fairfield Train Station, at 2.33pm - 3.23pm.