The 1981 New South Wales state election involved 99 electoral districts returning one member each. The election was conducted on the basis of optional preferential voting system. There was a significant change from the 1978 election as a result of the passage of the Parliamentary Electorates and Elections (Amendment) Act 1979, and the Constitution (Amendment) Act 1979. The effect of these Acts was to end the electoral malapportionment requiring that the number of electors within each electoral district be within 10%. Under the previous zoning system, a seat in the "central area" had a quota of 34,067, but could be as high as 40,880 while a "country area" seat had a quota of 26,016 but could be as low as 20,813. The effect of the 1980 redistribution was to create 6 new seats in Sydney Newcastle and Wollongong and abolishing 6 country seats.
The sitting member was Clive Osborne (), however Bathurst had become notionally held by due to the redistribution.
The sitting member was John Barraclough (), however Bligh had become notionally held by due to the redistribution.
The sitting member was Jim Curran (), however Castlereagh had become notionally held by due to the redistribution.
Clarence had become notionally held by due to the redistribution and the sitting member Matt Singleton (), successfully contested Coffs Harbour.
Coffs Harbour was a new district, notionally held by National Country. Matt Singleton (National Country) was the sitting member for Clarence which had become notionally held by due to the redistribution.
The sitting member was Neil Pickard (), however Hornsby had become notionally held by due to the redistribution.
The sitting member was Peter Toms (), however Maitland had become notionally held by due to the redistribution.
The sitting member was Eddie Britt (), however Willoughby had become notionally held by due to the redistribution.