Police helicopters located a vehicle fully submerged in the Campbells River during an aerial search on Tuesday morning.
State Emergency Service crews found the man's body after they recovered the vehicle from the floodwaters.
Investigations into the man's death are under way and a report will be prepared for the coroner.
The disturbing discovery comes as NSW braces for more heavy rain from Wednesday, as a new weather system sets in.
The Bureau of Meteorology says a weather system approaching from the west of New South Wales is expected to bring rain and thunderstorms to the central and southern inland as it crosses the state.
The rainfall may cause renewed flooding along rivers in parts of Central West and South West catchments from Friday, many of which are experiencing ongoing flooding due to previous rainfall in recent months.
