NSW officials have approached the ACT to discuss how pill testing has worked in Canberra, the Chief Minister has said.
Andrew Barr on Tuesday said his government was open to providing information to other jurisdictions on how the territory's drug harm reduction strategies worked.
NSW has proposed a major overhaul of its drugs laws. People caught with small amounts of illicit substances will have the option to get counselling or pay a fine rather than go to court.
Police will have the option to issue up to two fines of $400 to adults for personal drug use and possession of small amounts of drugs.
The NSW government will introduce legislation to effect the change later this week and is expected to start early next year.
While the NSW government has announced these changes it has pushed back on introducing pill testing at festivals for now.
But Mr Barr said the NSW government had approached the ACT to find out more information about the territory's pill testing scheme.
"We've already been approached by the NSW government in relation to pill testing, for example, to learn a little more about the models that we have in place so we're very open in discussing our experiences," he said.
The ACT has a pill testing site, which opens twice a week. Pill testing has previously taken place at music festivals in the ACT but in recent years organisers have struggled to secure the necessary insurance.
Organisers of pill testing are hopeful it could return before next month's Spilt Milk festival.
NSW has come under renewed pressure to implement pill testing at festivals following the deaths of two people at a music festival last month.
The state government has ruled out introducing pill testing until after the Labor government hosts a drug summit, which it has promised to do during its first term.
NSW Health Minister Ryan Park said pill testing would not prevent every death.
"I don't want to give anyone - whether they be a young person or a parent or anyone else - an impression that pill testing is a silver bullet that will stop every harm happening at a festival," he said.
But Mr Park said on Tuesday, as he announced NSW's proposed drug law changes, that a health approach was needed and the proposal would take an estimated 6000 drug users out of the courts.
"More importantly, people with very low amounts will be able to be treated through a health pathway, which is very, very important going forward," he said.
Laws to decriminalise the possession of small amounts of illicit drugs in the ACT will come into effect at the end of this month.