MidCoast Council has warned that water restrictions will remain, even if this weekend's predicted good rainfalls are received.
The rain isn't expected to dramatically change the situation with water restrictions likely to continue through January.
"We are optimistic that if the rain that is predicted eventuates, the upper river reaches may start to flow again by the weekend or early next week," council's director of infrastructure and engineering services, Robert Scott said.
"If we get some river flow down to Gloucester, we are hopeful we will able to pump some water for the town's supply and adjust the amount of water being trucked in. This will be a cost saving and also reduce the impact of heavy vehicle movements on our roads."
Follow up rainfall over the coming weeks and a general change in the weather patterns will be required before restrictions can be reduced, Mr Scott said.
"Council will be watching the water quality of any runoff very carefully, given the first heavy rain following fires or long dry periods can wash all sorts of things into our rivers, resulting in significant impacts."
Level 4 Water restrictions will need to stay in place to conserve available water until river levels rise and water quality is good enough to allow pumping to refill the Bootawa water storage.
"Overall, our water usage figures indicate that everyone - including visitors to our region - have been water conscious over the holidays."
Council has also been working with local rural producers, and other high water-use industries to try to support them through the drought.
"It's vital that everyone continues to reduce water use, so we can get the most out of the water we have currently got. While we hope the predictions are right and that regular rainfall will return soon to the region, we need to be prepared in case that doesn't occur, and we need to manage with less water."
To keep updated on current water restrictions, the plans for alternate water supply and to monitor your area's daily usage, visit www.midcoast.nsw.gov.au/waterrestrictions
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