The state government announced on Wednesday that golf courses in NSW can remain open amid the COVID-19 crisis - as long as participants maintain a safe social distance.

The decision comes just 24 hours after golf clubs were advised to shut their courses across the state. However, Wednesday's announcement has been met with some caution.

Kiama Golf Club general manager David Rootham said his board held a meeting on Wednesday afternoon to decide whether to keep their golf course open. They opted to allow social golf under strict restrictions, while competitions remain under review.

"Obviously, any ability we have to play golf will be excellent for our members and the community. But we have to make sure we do it in the most safe and sensible way possible," Rootham said.

Under Wednesday's announcement, there will be strict measures implemented. These include a limit of two people per golfing session and one person per golf cart.

Rootham said golf was a great sport to help improve mental health while also helping people maintain a safe social distance.

"It's incredible important. There's a real mental health issue that comes from being stuck in a house," he said.

"I think being able to get out into some parkland or open space like a golf course is mentally positive. [Space] is what golf courses have and I think it's why golf remains one of the safer [outdoor] activities to do during this crisis.

"But if there's going to be further developments with a stage three lockdown, I think many clubs will be reluctant to open."

Golf NSW chief executive officer Stuart Fraser told 2GB Radio on Wednesday that golf was a game that had multiple physical and mental benefits.

"People are spending so much time at home now. To be able to get out on a course and mentally try detach from everything going on around is very important," he said.

"We are advising clubs absolutely golf is back news with some social distancing.... golf can be played in smaller groups and people can adhere to those public health orders.

"Clubs can make changes to keep golf being played. It's over to clubs to do the right thing. If these ethics are abused by clubs and they don't adhere strictly to these laws, the state government will change and outlaw it.

"We're really appreciative of the the state government reversing the decision, I think it's a really good decision for people's wellbeing and health."

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