Question:

I have been granted a Permanent Residency visa because I was nominated by a State (State sponsored subclass 190 visa). Can I live in a different state within 2 years?

Answer:

Given that you were granted Australian Permanent Residency, you have rights to live in Australia as a whole and cannot be restricted to live in only one state.  This is why the 2 years restriction is not shown as a visa condition on your visa.

There is no legal basis to cancel your PR for living in another state of Australia.

 In saying that however, the state has nominated you because they want you to fill their skill shortage.  Unless you have good reasons for leaving the state who nominated you, try to do the right thing by giving it a go.  Otherwise, if all migrants are not honouring this moral obligation, then the Government may decide that the state sponsorship program is no longer serving our economic needs and may stop offering it for future aspiring migrants.  

Please note this advice does not apply to subclass 489 (Regional provisional visa) as this visa is not Permanent Residency. This is a temporary resident visa and it is a visa condition to live and work in Regional area before you are eligible for PR.