"Tragically, we have learned today that Craig Ruddy, well-known locally-based artist and Archibald Prize winner, has died as a result of complications from COVID-19," Mr Lyon said.

"Our thoughts are with his partner and family."

The artist, who described his work as exploring "the space between our real and mythical connections to the land and environment" had tested positive to the virus, along with partner Roberto, a few weeks ago.

"It is with the heaviest of tender hearts we let you know that last night Craig left his body peacefully at home in Roberto's arms," a post on his Facebook page said.

"We have lost the most divine human that gave so much to our communities, the creativity, the inspiration, the pure love and plenty of dance."

Locally acquired cases in northern NSW have been steadily rising, mirroring what is happening in the rest of the state.

In the latest reporting period, there were 576 new cases in the north of the state, with 96 of them in the Byron Shire

Mr Lyon had known the artist for close to 10 years. He said by all accounts his neighbour and good friend's recovery had been on track.

"It was very devastating ... I was completely caught off guard and very shocked a few hours ago," he said.

"I think it's probably the first death we've had in the Byron Shire and certainly comes as a shock and surprise. He's such a deeply loved and respected local artist.

"He had such a fantastic artistic career and has been cut short by COVID."

In 2004, Ruddy's charcoal drawing of David Gulpilil, titled Two Worlds, won the prestigious Archibald Prize. 

Considered one of the most influential artworks of that decade, it raised issues of Indigenous recognition and reconciliation — and reflected Ruddy's strong ties to the Indigenous community.

The piece also raised controversy after it became the subject of an unsuccessful court challenge following claims it was ineligible for the prize because it was not a painting. 

Another nod to the Indigenous community was his 2020 entry, a portrait of writer Bruce Pascoe.

At the time, Ruddy said it had been conceived after reading Pascoe's book Dark Emu, about Indigenous agriculture.

The Forestville-born artist grew up near Ku-ring-gai Chase and Garigal National Parks in northern Sydney. 

He said his proximity to the natural world in his early years had an impact on his work.

According to his website, his parents limited his physical activities as a child following a life-threatening illness.

Ruddy studied design and fashion illustration in the 1980s, but it wasn't until 2001 that he left a career in design to pursue his passion for art and painting.

Mr Lyon said the artist had a huge social circle and his death was a major loss for the community.

People have been paying tribute and leaving messages of condolence on social media.

Simon Borg-Oliver wrote: "Such a loving, talented and kind soul taken way to early … I will miss you dearly".

Angela Carapetis said he had been an inspiration, while Lynn Chalmers wrote: "Goodbye beautiful soul. Fly high young man". 

Wayne O'Donnell wrote: "Art is immortal, just like your memory".

Ruddy's family said people should remember him as he would have wanted.  

"I love the spontaneity of life and the open freedom of spirit and mind that brings souls together," he once said.

"Relationship, touch, companionship. Union in love and friendship that carries new life that transcends all."

Story By | Paulina Vidal