The move comes around a month after an outbreak in Beijing, which has been linked to a major wholesale market there.
China ordered local authorities to do regular coronavirus testing at these sites on Thursday.
Following a spike in cases in the capital in June, officials said the trading sections for meat and seafood in Beijing’s wholesale food market had been found to be severely contaminated with the virus.
They said the area’s low temperature and high humidity may have been contributing factors.
Beijing’s outbreak was linked to Xinfadi food centre, which houses warehouses and trading halls in an area the size of nearly 160 soccer pitches.
On Thursday, travel restrictions were put in place on people coming in and out of Xinjiang region’s capital city as part of efforts to contain an outbreak there.
Urumqi has been at the centre of the new wave of infections in mainland China, accounting for 96 of 105 confirmed Covid-19 cases reported on 29 July.
Non-residents seeking to leave the city will have to test negative in both nucleic acid and antibody tests before they can leave if they have been in the city for 14 days or more, Vice Mayor Song Yajun said during a daily briefing.
He added that residents should not leave Urumqi unless necessary.
Urumqi will also mandate 14-day quarantine for people arriving in the city from high-risk Covid-19 areas, the vice mayor said. Others entering the city will need to show proof of a negative test within the past seven days, among other requirements, which vary depending on where they are coming from.
The number of new cases in mainland China is still well below the peaks seen in February, but the resurgence underscores the challenge in stamping out the disease.
China has reported more than 84,200 coronavirus infections to date.
The number of deaths stood at 4,634 on Friday.
Additional reporting by Reuters