New laws banning smoking in outdoor dining areas have been welcomed by Illawarra residents, cafes and restaurants, say health representatives.

The ban prohibits smoking in commercial outdoor dining areas and was introduced by the state government on July 6.

Smoking cannot occur within four metres of seated dining areas. Business owners have to display no-smoking signs.

On-the-spot fines of $300 can be issued to individuals who flout the law and fines of up to $5500 for business owners.

Heart Foundation Illawarra regional health promotion co-ordinator Andy Mark said the laws had been welcomed by the community and were well supported in the lead-up.

"There always going to be a few occasions where, if it's not communicated well, people will smoke in those locations but people will become more and more aware that it is now smoke-free outdoor dining," Mr Mark said.

"NSW Health did a lot of work for a year to raise awareness of it - businesses are aware of it; customers are aware of it. It's another fantastic step forward for not only health but a pleasant dining experience."

Illawarra Shoalhaven Local Health District health promotion officer Tara Lawson said she visited 130-150 businesses across the region before the ban, providing information and signage and the response was very positive.

NSW Health also sent out to letters to affected businesses identified by councils.

Ms Lawson said she talked to a lot of smokers who were keen on the new law as it would help them quit.

"This is a law to support them. It denormalises smoking. If you've made a quit attempt it reduces the triggers for a relapse."

Business owners can order free no-smoking signs from health.nsw.gov.au/smokefree.

Breaches can be reported at this website or by calling 1800 357 412.

Jennifer Skylas made her organic food shop and cafe smoke-free when she opened the business  more than three years ago and it’s a decision she hasn’t regretted.

All Good Things Organic in Burelli Street features a couple of outdoor tables where people can enjoy a bite to eat and a cup of coffee.

‘‘I grew up in a heavily smoking family,’’ Ms Skylas said.

‘‘Both my parents smoked probably a pack of cigarettes a day so I’ve always had a disdain for it from the very beginning.

‘‘In terms of the store, it [smoking] doesn’t really fit into the whole concept of being organic.’’

Most customers appreciated the fact the store was smoke-free, but a minority of people had walked out because they couldn’t have a smoke.

‘‘Some people have ignored our smoke-free signs and smoked anyway and we’ve had to go outside and ask them to step aside.’’

Ms Skylas was excited about the new smoking ban.

‘‘It’s a personal choice if someone wants to smoke but other people shouldn’t have suffer around them.’’

Information: health.nsw.gov.au/smokefree or 1800 357 412