A red alert has been issued because of blue-green algae in Burrendong Dam but WaterNSW says town water supplies are "unaffected and safe to drink".
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"Conventional water treatment processes" removed the risk posed by the algae, its spokesman said.
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He said the species of blue-green algae identified was potentially toxic.
"People are advised not to enter the water, not to drink untreated water or bathe in water drawn from the dam," the spokesman said.
"Algae may cause gastroenteritis in humans if consumed and skin and eye irritations after contact. Boiling the water does not remove algal toxins."
The spokesman told stock and domestic users of untreated water from the dam to watch for algae scums and find alternative supplies of water if needed.
"Livestock owners are reminded to continue to check stock water supplies for blue-green algae and to remove stock from foreshores where surface scum is visible or blue-green algae are suspected," he said.
WaterNSW also advises against eating mussels or crayfish in red alert warning areas.
"Any fish caught should be cleaned and washed thoroughly in uncontaminated water and any internal organs disposed of before consumption, its spokesman said.
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He said blue-green algae usually appeared as green paint-like scums on the water, near the edges, or as greenish clumps throughout the water.
"It makes the water appear dirty, green or discoloured and generally has a strong musty or earthy odour," he said.
"Blue-green algae occur naturally and can reproduce quickly in favourable conditions where there is still or slow-flowing water, abundant sunlight and sufficient levels of nutrients.
"It is not possible to predict how long the algae will remain at high levels.
"People who believe they may have been affected by blue-green algae are advised to seek medical advice."
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Updates about blue-green algae blooms and red level warning areas can be obtained by calling 1800 999 457 or visiting www.waternsw.com.au/water-quality/algae.
