The Waratahs took control of Super Rugby's Australian conference with a bonus-point 30-6 victory over the Reds in Sydney on Saturday.
The 'Tahs seventh straight victory against the Reds means they are now the only unbeaten Australian franchise and they retain the Templeton Cup.
Unanswered tries from Drew Mitchell, Dave Dennis, Lachie Turner and Benn Robinson took the Waratahs four points clear at the top of the Australian pool.
A perfect record of two bonus-point wins from two starts also sees the Waratahs move to the top of the overall standings.
It's the Sydneysiders' biggest ever win over their rivals from Queensland whose misery was compounded by the sight of captain James Horwill being forced off with an ankle injury.
The Reds never seriously threatened to cross the whitewash as the home side shut them out with a near-faultless defensive display and an extremely effective pack.
The hosts got off to a great start and were able to race out to a 11-0 lead after just ten minutes. Berrick Barnes landed two early penalties before Kurtley Beale and Ben Mowen linked up with the Reds defence back-pedaling to put Drew Mitchell in for the Waratahs' first try and his third of the season.
It took the Reds 23 minutes to get on the scoreboard via a Quade Cooper penalty but the visitors would fall further behind when they were caught napping at a Waratahs line-out. Dave Dennis collected Tatafu Polota-Nau's short throw and ghosted clear to score untouched.
Cooper added his second penalty just before the break but the Waratahs were in control with a ten-point lead as the teams headed for the sheds.
The second half continued in much the same vein as the Waratahs added their third try when Luke Burgess' long pass wide found Lachie Turner in acres of space and the wing could cruise over.
The Reds pack just had no answer to their hosts in the tight stuff and when replacement prop Benn Robinson powered over from short range, there was no longer any doubt about the result.
The Waratahs will now head to New Zealand where their title credentials will be put to the test by the Crusaders. The Reds face a tricky trip to Canberra for another derby with the Brumbies.
For the Waratahs:
Tries: Mitchell, Dennis, Turner, Robinson
Cons: Beale 2
Pens: Barnes 2
For the Reds:
Pens: Cooper 2
Waratahs: 15 Kurtley Beale, 14 Lachie Turner, 13 Rob Horne, 12 Tom Carter, 11 Drew Mitchell, 10 Berrick Barnes, 9 Luke Burgess , 8 Ben Mowen, 7 Phil Waugh (c), 6 Dave Dennis, 5 Kane Douglas, 4 Dean Mumm, 3 Al Baxter, 2 Tatafu Polota-Nau, 1 Sekope Kepu.
Replacements: 16 Damien Fitzpatrick, 17 Benn Robinson, 18 Sitaleki Timani, 19 Chris Alcock, 20 Brendan McKibbin, 21 Daniel Halangahu, 22 Ryan Cross.
Reds: 15 Peter Hynes, 14 Rod Davies, 13 Will Chambers, 12 Anthony Faingaa, 11 Digby Ioane, 10 Quade Cooper, 9 Will Genia, 8 Scott Higginbotham, 7 Ed Quirk, 6 James Horwill (c), 5 Van Humphries, 4 Rob Simmons, 3 James Slipper, 2 Saia Faingaa, 1 Ben Daley.
Replacements: 16 James Hanson, 17 Greg Holmes, 18 Leroy Houston, 19 Beau Robinson, 20 Ben Lucas, 21 Mike Harris, 22 Aidan Toua.
Referee: Bryce Lawrence (New Zealand)