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The Waratahs ended a five-game losing run against the Reds to humble their interstate rivals five tries to one with man-of-the-moment Israel Folau scoring a try double after grabbing a hat-trick the previous week.
The 26-point margin eclipsed the Tahs' previous highest winning margin over the Reds of 24 in their 30-6 win three years ago.
It was a dominant performance by the Waratahs upsetting the Reds with rugged uncompromising defence and moving the ball quickly from the rucks.
They held a 19-5 half-time lead and kept the Reds scoreless in the second-half to remain unbeaten with two wins this season under coach Michael Cheika.
Folau had an eventful match, scoring his two tries in the opening 25 minutes before being yellow-carded for intentionally knocking the ball into touch to prevent Reds winger Dom Shipperley from scoring nearing half-time.
Reds' only points came seconds later when former Tahs' wing Lachie Turner crossed wide out against the undermanned Waratah defence.
The Waratahs clinched the match seven minutes after half-time when Wallaby back Kurtley Beale scored off a quick free kick close to the Reds line.
"We had our forwards doing the hard work and then our backs looked fantastic," Waratahs skipper Michael Hooper said. "We played our game in the wet conditions and it paid off.
"We are starting to get confidence in our ability to attack from anywhere and we can build of this confidence."
The Waratah forwards dominated the Reds pack, with South African hard man Jacques Potgieter prominent in the heavy exchanges before making way for Will Skelton just after half-time.
Nick Phipps and Bernard Foley won the battle of the halves over Wallaby pair Will Genia and Quade Cooper, with Foley finishing with three conversions and two penalties and Cooper missing his only kick at goal.
"We didn't put them under any pressure and we didn't play any field position so we put ourselves under a lot of pressure," Reds captain James Horwill said.
"We made too many mistakes and the Waratahs were very good on counter-attack and were able to convert their opportunities.
"We have plenty to work on and we have six days before we play the Cheetahs at home."
The Waratahs will have a bye next weekend before looking to remain unbeaten against the Brumbies in Canberra on March 15.
Scorers:Waratahs - Tries: Israel Folau (2), Peter Betham, Kurtley Beale; Conversions: Bernard Foley (3); Penalties: Foley (2)
Reds - Try: Lachie Turner
Teams:Waratahs
15 Israel Folau, 14 Alofa Alofa, 13 Adam Ashley-Cooper, 12 Kurtley Beale, 11 Peter Betham, 10 Bernard Foley, 9 Nick Phipps, 8 Wycliff Palu, 7 Michael Hooper, 6 Dave Dennis (captain), 5 Kane Douglas, 4 Jacques Potgieter, 3 Paddy Ryan, 2 Tatafu Polota Nau, 1 Benn Robinson
Substitutes: 16 Tola Latu, 17 Jeremy Tilse, 18 Sekope Kepu, 19. Will Skelton, 20 Stephen Hoiles, 21 Brendan McKibbin, 22 Rob Horne, 23 Matt Carraro, 24 Pat McCutcheon, 25 Jonno Lance
Reds
15 Aidan Toua, 14 Lachie Turner, 13 Ben Tapuai, 12 Mike Harris, 11 Dom Shipperley, 10 Quade Cooper, 9 Will Genia, 8 Jake Schatz, 7 Liam Gill, 6 Eddie Quirk, 5 James Horwill (captain), 4 Rob Simmons, 3 Greg Holmes, 2 Saia Fainga'a, 1 James Slipper
Substitutes: 16 James Hanson, 17 Ben Daley, 18 Jono Owen, 19 Ed O'Donoghue, 20 Beau Robinson, 21 Nick Frisby, 22 Anthony Fainga'a, 23 Chris Feauai-Sautia
