"We've got the devastating news there's not much left in the town of Balmoral,"Premier Gladys Berejiklian said in nearby Picton on Sunday.
"Very sad to hear that. Many residents have had that news in the last little while. Communities like Buxton and others have also been very hard-hit."
The Premier said some residents would be allowed to return to their properties"today or tomorrow"but others could have to wait longer.
Assessment teams are trying to determine when it would be safe for people to go home.
"If people have lost their properties,they still want to go back to see what's left and if there is anything they can salvage,"Ms Berejiklian said.
"We know that's part of the recovery. We want people to have access to their land as soon as they can but it has to be safe."