Midnight Mafia at Sydney Showground on Saturday will be the second music festival in NSW to participate in the state-backed trial to reduce drug harm. The event draws more than 20,000 attendees annually.
The first was the Yours and Owls festival in Wollongong in March, where 100 punters used the drug-testing facility.
Up to 10 more sites will take part in the 12 month-trial, which the state's health minister Ryan Park described as a crucial health intervention.
"This trial is about helping festival-goers make more informed decisions about drug use with the goal of reducing harm and saving lives," he said on Tuesday.
The free and anonymous drug-checking service allows patrons to bring a small sample of substances they intend to consume for analysis.
Qualified health staff provide a rapid evaluation of the main components of the substances in line with available technology, and an indication of potency where possible.
The announcement of a second trial participant comes after a drug summit released its report earlier in April, calling for a pilot phase for stopping both the use of sniffer dogs and strip-searching of suspected patrons among its 56 recommendations.
When asked about halting sniffer dog operations, Mr Park said it was up to police and emphasised the government's approach to illegal drugs.
"This is not a green light for people to necessarily go and use drugs," he told reporters.
"What we are saying is that we know young people use illicit substances. We want to see whether this type of testing gives them a final chance ... to take a different path."
He also acknowledged the approach walks a political tightrope between enforcing the law and avoiding overdoses.
Police charged 23 people with possessing prohibited drugs and kicked out six patrons at the Wollongong festival in March.
"I'm aware how challenging this public policy issue is ... it's challenging for me. It's challenging both as a legislator and as a dad of a 14-year-old who I know over the coming years will have these challenges and experiences going forward," he said.
Mr Park said any recommendations from the report would be implemented in a "methodical" way.
But Uniting NSW/ACT's advocacy director Emma Maiden says pill testing is a proven harm-minimisation strategy and calls for a statewide rollout.
"We need to urgently implement an ongoing program for all festivals across NSW and a fixed site facility to provide this life-saving service for people who use drugs outside the festival setting," she said.
Some opponents contend pill testing sends mixed messages about the risks of using and possessing illicit drugs.
