A red alert at Fitzroy Falls Reservoir has been lifted as blue-green algae concentrations have "reduced in recent samples".
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WaterNSW said in a statement as the red alert has been lifted "there are no longer any restrictions on recreational activities".
"WaterNSW will continue to monitor the lake although further red alerts are not expected in the near future," the statement said.
According to the WaterNSW algal alerts in NSW map, Fitzroy Falls Reservoir currently has an amber alert.
At amber alert levels blue-green algae may be multiplying in numbers.
The water may have a green tinge and musty or organic odour.
The water should be considered as unsuitable for potable use and alternative supplies or prior treatment of raw water for domestic purposes should be considered.
The water may also be unsuitable for stock watering.
The water remains suitable for recreational use, however algal concentrations can change rapidly. Water users should use caution and avoid water where signs of blue-green algae present.
Visit http://www.waternsw.com.au/algae or call 1800 999 457 for updates about blue-green algae blooms and red level warning areas.