Water restrictions in Gunnedah could lifted in less than three weeks.
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In a report to council, water services manager Kevin Sheridan said the shire could shift from Level 1 restrictions back to permanent water conservation measures because of less demand and more rain.
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The shire went to Level 1 restrictions on January 1 this year because of the ongoing drought but as of last month, Mr Sheridan said bore production capacity had since improved by about 50 per cent.
The week average water use is down to about 8ML a day, half of the average amount in late 2019.
"The demand for water in the Gunnedah Shire town water supplies has reduced dramatically, thanks to some good rainfall events recently," Mr Sheridan wrote.
"Whilst there was a slight increase in consumption during the last week of March, a further rainfall event of in excess of 50mm occurred after the data in the [included] graphs was collected.
"The current town water supply demand over the coming months is expected to remain in the range of 6 to 10 ML per week, depending on the weather conditions, and therefore the Level 1 water restrictions could be reduced to Level P Water conservation levels at least until next spring/summer."
Liverpool Plains Shire Council area, except Wallabadah, returned to permanent measures in February after more rain fell in the new year than the whole of 2019.
On permanent water measures, use of fixed hoses and sprinklers is restricted except between 6-8am and 6-10pm during Daylight Saving Time and between 6-8am and 5-9pm during EST. Vehicles and hard/paved surfaces can be washed down with high pressure hoses only and pools should be covered to reduce evaporation.
Councillors will vote on the matter at Wednesday's meeting.