Wellington appears to have "dodged a bullet" and is safe enough to return to level 1 today, following more than 8000 tests in the last week that have not yielded a single positive result.
And the Government has also deemed it safe enough to resume quarantine-free travel - with a new requirement for a negative pre-departure test - with South Australia, ACT, Tasmania and Victoria from Monday.
Travellers must not have been in Queensland, Northern Territory and Western Australia on or after 10.30pm (NZT) on June 26, when the transtasman bubble pause first came into effect. They must also not have been in New South Wales on or after 11.59pm (NZT) on June 22.
Covid-19 Response Minister Chris Hipkins said Cabinet would review the situation with New South Wales, Queensland, Western Australia and the Northern Territory next Monday, with announcements expected the following day.
Following a weekend holiday spent in the capital by a Syndey tourist who was later shown to have the Delta variant, Otago University epidemiologist Professor Nick Wilson said the situation in Wellington was now looking "pretty favourable".
"So we've probably dodged a bullet on this one. But it's still important that people do get tested, and that there remains a heightened level of surveillance for Wellington."
Wilson felt the capital's scare had proven a "missed opportunity" for requiring masks and mandatory QR-code scanning around the city.
"These sorts of measures would have made this particular episode less of a worry if those extra safeguards had been in place – but it's good news that the Government is looking into these."
The Government is now actively looking at those measures, including how enforceable they would be.
Wellington returned to alert level 1 at 11.59pm last night - eight days after a Covid-infected Sydney tourist flew out of the capital.
The virus can incubate for up to 14 days, but director-general of health Dr Ashley Bloomfield said the likelihood of people in Wellington still incubating the virus was "now very low".
While there were still about 100 contacts yet to be tested, they will have been isolating for a full 14-day period.
Wellington Entertainment Group hospitality operations manager Cody Halton said the level 1 announcement was "very welcome" news.
The drop in business was quite considerably, but he said this time around people were a lot more understanding.
"We're really hoping this weekend will be a big one with everyone not being able to go out last weekend.
"It's just important that Wellington sticks together. As I said, the hospitality scene thrives on local residents of Wellington."
Prime Minister Jacinda Ardern said a pre-departure testing requirement within 72 hours of a flight to New Zealand would likely be in place for some time.
Options for Kiwis stuck in the NSW lockdown wanting to return to New Zealand will be looked at next week, Ardern said.
Meanwhile both of the two contacts in New Zealand connected to the positive case who worked in a goldmine in the Northern Territory have tested negative.
"Health officials were also advised of 40 people in New Zealand who have been classified as contacts of the air steward in New South Wales, who had tested positive," the Health Ministry said.
"All of these people have been contacted, had their first test and all results are negative. A number of these people are continuing to isolate and will undertake day 5 testing, based on their contact classification."
New South Wales' Greater Sydney area, the Northern Territory's Greater Darwin region and Western Australia's Perth and Peel regions are now all in lockdown.
Restrictions are also in place across South Australia - which has no cases - and Queensland.