Water restrictions have been lifted in the Liverpool Plains shire as Quipolly Dam continues to fill.
The dam is at 90 per cent and still rising, so all towns in the shire, bar Wallabadah, have been returned to permanent water measures.
Quipolly was hovering around 32 per cent for some time because of the drought so the council introduced level 1 and level 2 restrictions.
"We've probably got the fullest dam in the district. It's at 90 per cent and slowly filling and all other supplies, ground water systems, have had a good recharge," Liverpool Plains Shire Council's (LPSC) water services manager Rod Batterham said.
"We've got a very resilient supply. We did well in the drought and recovered first," he said.
LPSC mayor Andrew Hope said while the lift on restrictions was good news, residents were reminded to still "be mindful of water usage".
Wallabadah will move to level 5 after its water supply was contaminated by flood water from heavy rain on the Australia Day weekend. A precautionary boil alert was issued following the incident.
Mr Batterham said the bore had been cleaned and "redeveloped" and was undergoing testing. In the interim, water is being carted from Quirindi to keep up supply.
He said it was still "unknown" when the bore would be back online because they had to be sure it was clear of dirty water.
Meanwhile, the repair work on the pipe between Quipolly Dam and Werris Creek water treatment plant is doing its job and the council has government approval to issue a tender for the new plant.
The council waited some months for the approval and Cr Hope said the market was now "less competitive" because contractors were busy with drought projects.
After receiving approval in December, the council has been working on preliminary costings for the project, which had to under redesign because of worsening algal blooms caused by the drought.
"We had costs revised because of the time frame to retain approval," Mr Batterham said.
"We're just making sure the budget is correct before we go to tender."