Dubbo Regional Council has not ruled out a rebate for the servicing of evaporative air conditioners to reduce their use of water.
When poorly maintained they are reported to guzzle it.
Earlier this week Tamworth Regional Council water director Bruce Logan was promoting the rebate, yet to be approved by the city's civic leaders.
Talks with repairers and salespeople have convinced Tamworth Regional Council staff of the need for evaporative air conditioners to be working at an optimum level.
Evaporative air conditioners can use between five and 40 litres (L) per hour, they say.
On Monday Mr Logan declared the proposed rebate would "result in a significant reduction in water consumption" in businesses and households.
Dubbo Regional Council, which is "extremely pleased" with the latest data on water use within its boundaries, has launched a rebate system.
The council is currently offering rebates on "water timers and three-star or higher WELS water-saving showerheads".
"Depending on the take up of the current available rebates, Dubbo Regional Council is considering more rebates for other water-saving items," chief executive officer Michael McMahon said.
"However, the specifics around these rebates are yet to be finalised."
..outdoor watering still takes up most of our region's water use.Dubbo Regional Council chief executive officer Michael McMahon
The council has welcomed data for the week ending January 12, showing Dubbo, Wellington and Geurie residents used less than the 280L per person per day target of level four water restrictions.
In Dubbo water use plummeted from 393L in the week ending January 5 to 268L in the week ending January 12, during which 18.4 millimetres of rain fell at Dubbo City Regional Airport and extreme heat subsided.
Wellington used 176L down from 307L, and Geurie 173L down from 302L.
"This significant drop could be attributed to the cooler temperatures with fewer people turning on their air conditioners," Mr McMahon said.
"We also assume that fewer people watered their lawns or gardens this week, as the rain provided a much-needed soaking.
"On designated watering days, our data shows there was a decrease in water usage by nearly 30 per cent in some areas, also an indication that we received some rain in the days and even hours before allocated watering times.
"Despite this significant and impressive reduction, outdoor watering still takes up most of our region's water use."