Broken Hill has recorded its third death linked to COVID since the beginning of the pandemic, with an elderly woman in her 90s the latest victim.
The 93-year-old was living at St Anne's Nursing Home and contracted the virus following an outbreak at the facility last week.
The woman had several underlying health conditions that contributed to her death, according to Far West Local Health District chief executive Umit Agis.
"Due to the severity of her underlying health issues she passed away," he said.
Nine other residents at the aged care home have tested positive to the virus, with the latest case detected last night.
Southern Cross Care chief executive Zoe Tonkin said staff, residents and the family were devastated.
"It's not an easy day," Ms Tonkin said.
"When you're dealing with a pandemic, we knew if it got in it wasn't going to be good.
"Our staff are very, very sad and shaken by it all, and our condolences as an organisation go out to this resident's family and their loved ones.
Lockdown continues
The section of the nursing home where the cases have been detected has been locked down since last week, after an elderly man tested positive.
Two of the nine cases have recovered, with another four expected to be COVID-free by tomorrow.
However, with another resident testing positive overnight, the lockdown within the wing of St Anne's is expected to continue for another two weeks as a safety precaution.
In January, Aruma Lodge in Broken Hill was declared a hotspot by NSW Health after several residents contracted the virus.
Visitor exemptions for visiting residents who are receiving end-of-life care will be decided on a case by case basis.