Water restrictions will be in place for parts of NSW from June 1.
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However, residents in the Southern Highlands are exempt from the level one water restrictions that will affect Sydney, Illawara and the Blue Mountains.
A spokesperson from Wingecarribee Shire Council said "the Southern Highlands is fortunate to have above average storage capacity compared to many of our neighbouring regions."
"At the current usage rate we've got considerable water capacity for some time, however, that doesn't mean we should waste this important resource," they said.
"It also means that we may need to consider future water restrictions should conditions continue to deteriorate and significant rainfall isn't recorded."
A dry summer and lack of rain has seen some dam levels fall below 50 per cent.
Wingecarribee Reservoir currently sits at 55.8 per cent, this time last year the reservoir was 65.4 per cent.
Minister for Water, Property and Housing Melinda Pavey said Sydney is seeing some of the lowest inflows into its dams since the 1940s.
"The Bureau of Meteorology's latest forecast is predicting below-average rainfall and higher temperatures for June to August, which are key drivers of stronger water demand," she said.
Regardless of the drought conditions, there are a few simple steps that can help conserve water around the home, Wingecarribee Shire Council's Water Wise Initiatives include:
- Sprinklers and irrigation systems - Avoid watering in the heat of the day and only use sprinklers or irrigation systems before 10am and after 4pm.
- Hoses - Hand held hoses should have a trigger nozzle and watering should be avoided between 10am and 4pm.
- Clean-up - Instead of hosing hard surfaces like driveways, use a broom to clean up leaves, grass clippings, dirt or dust.
- Washing vehicles - Wash your car on the lawn wherever possible. This helps to water your lawn and avoids adding to stormwater pollution.