Dubbo Regional Council chief executive officer (CEO) Michael McMahon has released data showing Dubbo and Wellington exceeding the residential water consumption target of current level two water restrictions.

He is urging residents and businesses to make "informed and educated choices" in their daily water use, referring them to water-saving tips at www.dubbo.nsw.gov.au/save-water and promising "engagement activities".

The CEO has also announced that the council as a "large water user" will review its operational usage.

"Even though council is following level two restrictions, an immediate water audit will soon get under way that assesses DRC's current water use and will evaluate the requirement to turn off the tap on watering operations and activities not directly related to sustaining human health," he said.

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Level two water restrictions were introduced across the local government area in June with a residential water consumption target of of 301 litres per person per day.

On Friday Mr McMahon released July data showing Dubbo had used an average 325 litres and Wellington 370 litres per person per day.

"The community should also expect a further increase in restrictions by year's end with little to no rainfall predicted in the coming months," he said.

"This is the reality cities and towns like Dubbo now face considering other centres like Tamworth, Bathurst and Orange are already near, or at the top end of the scale for water restrictions."

The CEO did not indicate which level of water restrictions would be introduced.

"There is significant room for the whole community, including high water users in the business community, to come together and improve our situation by making informed and educated choices in their daily water use," Mr McMahon said.

"As a community, we need to ask ourselves, 'What can I do to reduce my water consumption that will buy us X number of days before needing to go to the next level of water restrictions?'."