The Department of Communities and Justice's Anti-Discrimination Board NSW issued a statement on Thursday after it received a number of inquiries about venues banning patrons with Sydney addresses.

Several Hunter establishments, including the Paxton Hotel, Hotel Jesmond and Wallsend's Lemon Grove Hotel, have closed their doors to Sydney-siders in order to protect their venues and customers from the virus.

The board's statement said denying entry to someone because of their geographic place of residence is not considered discrimination under the Anti-Discrimination Act 1977 (NSW).

"The Act does allow for complaints based on actual or presumed disability which includes illnesses and diseases," the statement said. "For example, where a person had, or was assumed to have, COVID-19 and was terminated from their employment as a result.

"Public health advice is changing regularly, and heavy penalties are in place for venues who do not follow public health measures.

"Venues may be applying heavier restrictions to ensure that they are meeting their public health requirements for their staff, patrons and local communities."

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Paxton Hotel publican Vic Simpson and Lemon Grove licensee Wayne Stewart said their decision was about keeping their local customers safe, rather than discriminating against certain people.

Mr Simpson said he did look into anti-discrimination before making the decision, which had been well-received by locals and visitors alike.

Both pubs have signs out the front of the buildings explaining the policy, which the licensees believe has helped avoid any problems.

"We've had a few people who have stopped in, and when they've seen the sign they've said 'we thought we'd stop in for a quick drink on our way through, but no problems'," Mr Simpson said.

"We haven't had anything negative. The locals feel safer knowing they don't have to look over their shoulder."

"No one wants to turn away any business," Mr Stewart said.

"We're not discriminating against anyone.

"This is purely for the protection of our patrons.

"It's frustrating, but it is what it is. We have a lot of older clientele who are entitled to have a life and feel safe. I'd hate if we had to take that privilege away from them again.

"As soon as it does clear up, we'll open our arms to anybody and everybody."