from June 1 in a major move out of the Coronavirus crisis by Premier Gladys Berejiklian.
The move is likely to see dozens of local restaurants and pubs re-open next month, with many stood down employees set to be reinstated.
Patrons will not be allowed to stand inside and must be seated.
“We’ve opened up the regions and now it’s our happy hour – it’s time to wine and dine,” said Deputy Premier John Barilaro.
Health Minister Brad Hazzard said it was important everyone remained cautious when heading out.