The Dubbo local government area will move to level three water restrictions on October 1.

The decision was made at the September Council Meeting on Monday night.

Under the restrictions, residents are not permitted to use watering systems, non-fixed sprinklers or hand held hoses at any time. Microsprays, drip systems and soaker hoses are allowed during set times.

Those with new lawns will be allowed to water in the grass for one week.

Washing down walls or paved surfaces is also not permitted.

Washing a car has to be done by a bucket only. Cars can only be washed between 9am and noon.

Level four restrictions will quickly follow on November 1.

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Under the higher level of restrictions, the lawns or new turf cannot be watered.

Showers also have to be restricted to five minutes, or one bath per person, per day.

Dubbo Regional mayor Ben Shields said it was "disappointing" the city used more water under restrictions than before they had been introduced.

He said the biggest public education campaign in council's history was about to be launched to ensure residents were prepared for the next level of cuts.

"There are not a lot of times when I'll say Orange does it better than Dubbo. But they know how to save water better than us. We need to get in there and beat them at it," Cr Shields said.

Councillor David Grant said he wanted the restrictions to be made into a challenge with rewards brought in like an open day at the pool.

"We could make this a bit fun," he said.