Cr Jim Mauger last week called on council to move to Level 2 restrictions, which would see fixed watering systems banned and use of hand-held hoses allowed only between 4pm and 10am.

Level 2 restrictions are triggered when either Bundanoon Creek or Medway water storages fall below 55 per cent of capacity or the Sydney Catchment Authority asks council to reduce demand.

Bundanoon Creek is currently at 81 per cent of capacity and Medway at 60 per cent of capacity.

The issue was raised during discussions of a draft plan to ensure water supply to the shire in the event of drought.

The draft Drought Management Plan was developed in response to Sydney Catchment Authority's requirements for bulk water customers. A drought management plan is also a condition of eligibility for subsidies under the NSW Government's Country Towns Water Supply and Sewerage program.

The plan identifies triggers for implementing water restrictions ranging from limited hours for fixed watering systems (Level 1) to total bans on watering of gardens, car washing and window cleaning and filling swimming pools (Level 5).

Director of Technical Services Ian Kite noted in his report to council that although council had only needed to introduce Level 1 restrictions in recent years, it was highly likely that higher levels of restriction will have to be introduced.

The plan also includes measures to respond to emergency situations such as contamination of the water supplies, high concentrations of algae or other suspended matter, a major failure of the system or extended period of power failure.

Mr Kite said that the high degree of interconnectedness of the water supply system meant that "catastrophic failure" was unlikely as most areas of the shire could be supplied from any one of three water sources.

Full story in Monday's Southern Highland News.