Premier Gladys Berejiklian says she would consider implementing pill testing in NSW if her government was shown evidence it saved lives.
The Liberal leader, who is opposed to pill testing, appeared to soften her stance on the measure on Wednesday when asked about another death at an Australian music festival.
"If there was a way in which we could ensure that lives were saved through pill testing we would consider it - but there is no evidence provided to the government on that," Ms Berejiklian said.
Ms Berejiklian said pill testing gave drug users "a false sense of security" and her job as Premier was to keep the community safe.
On Monday, NSW Opposition Leader Michael Daley said pill testing "should not be off the table", adding "'just say no' is not the answer".
The comments come after four young people died in the last four months from suspected overdoses after attending NSW music festivals and concerts. This week, 22-year-old Brisbane man Josh Tam died after he was taken to hospital from the Lost Paradise music festival on the Central Coast.
In Victoria, a 20-year-old died from a suspected overdose on Tuesday after a festival south-east of Melbourne.
A huge police operation was launched for the Field Day festival in Sydney's CBD on New Year's Day, an event headlined by artists including Cardi B, Flight Facilities and Amy Shark.
Detective Chief Inspector Stuart Bell, who led the operation, said six people were charged with drug supply after police seized substances such as MDMA, cannabis and ketamine at the festival.
A further 144 people were charged with drug possession after a drug dog operation, while four people were taken to hospital for "drug-related health issues". An estimated 28,000 people attended the festival.
Chief Inspector Bell said police have not yet analysed the chemical make-up of the drugs seized.
"Obviously if you consume a drug, you don't know what's in it. You could die," he said.
"From our perspective, we encourage people not to take drugs. The question of pill testing is for the government."
He said this year's operation was similar to other years, after being asked if police numbers had been increased following the recent music festival deaths.
Two men, aged 19 and 21, and an 18-year-old woman will appear before Downing Centre Local Court in the coming weeks after police allegedly seized a total of 120 MDMA capsules between them.
A 21-year-old man from Miami on the Gold Coast will face the same court charged with assaulting a 20-year-old woman at the festival.
In October 2018, a campaign was launched by the Uniting Church calling for drugs to be decriminalised for personal use in NSW. The campaign, launched by entrepreneur Sir Richard Branson, is backed by organisations including the Law Society of NSW and the NSW Bar Association.
Two people died and three others were left in a critical condition in September 2018 after a suspected overdose at the Defqon.1 festival in Sydney's west.
In December, 19-year-old Callum Brosnan died and 16 others were hospitalised after suspected overdoses at the Knockout Games of Destiny dance music festival.
with AAP