Dubbo Regional Council would prefer "all businesses" within its boundaries to create a Water Saving Action Plan (WSAP) for which a template is available online.
There are about 300 businesses in the region which must prepare the plan, have it approved by the council and implemented before November 1 when level four restrictions begin.
They range from turf farms and car-wash facilities to hotels and motels.
The businesses are being told by the council that failure to comply with an approved plan will "come with penalties after warning". They can also expect compliance officers to visit in the coming months to check they are equipped with the "right plans".
"The Water Saving Action Plans are designed to encourage businesses to look at their current water usage practices and identify ways they can save water," the council's chief executive officer Michael McMahon said.
"This action will help us reach our daily usage targets and go toward securing our water supply for the whole community. We understand that level three and level four restrictions is uncharted territory for our region.
"We have taken our water availability for granted in the past but by making some adjustments in how we use water in the workplace we can make a big difference.
"We will be working closely with businesses to get their plans approved and in place as quick as possible."
The council is asking businesses to be patient while it processes "a large influx of WSAPs".
A list of industries which must create WSAPs and the template can be found at www.dubbo.nsw.gov.au/drought-hub/droughthub.
It is also available from customer service centres at Dubbo and Wellington.
Completed WSAPs can be submitted at the centres or via firstname.lastname@example.org.
For help call 68014000.