Hospitality venues in Greater Sydney, including the Central Coast and Blue Mountains areas, will reinstate the four-square-metre rule indoors as the state grapples with a growing cluster of COVID-19 cases.
In addition to the density rule, venues will also be capped at 300 patrons.
The new rules come into effect from midnight tonight, and are expected to be in place until further notice.
The tighter restrictions come just three weeks after restaurants, cafés and bars (with up to 200 square metres of floor space) were permitted to operate under a relaxed two-square-metre rule indoors on December 1.
In addition, no more than 10 visitors are permitted to gather in a household in the Greater Sydney area from midnight tonight.
The state recorded 30 new locally acquired cases of COVID-19, with 28 cases linked to the Avalon cluster.
In a press conference this morning, Premier Gladys Berejiklian encouraged people not to panic buy, and to wear masks in indoor settings or anywhere where social distancing cannot be maintained.
There is a growing list of venues, including restaurants, cafés, pubs and clubs, linked to the current cases. Residents are encouraged to view the full list on the NSW Health website, and get tested and self-isolate if required.