Water restrictions could be eased on Monday night if Dubbo councillors agree to provide some "respite" to the community.
The Dubbo local government area is currently on level four restrictions. Under level four restrictions, there is a daily target of 280 litres of water per person per day.
Residents are able to water both their garden and lawns. Outdoor watering is permitted for a maximum of 30 minutes on Wednesdays and Sundays outside of 9am and 6pm.
If the restrictions were taken back to level three, residents would be permitted to water for one hour on the allocated days.
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A decision on the water restrictions will be made at the council meeting on Monday night. Mayor Ben Shields is expected to present a mayoral minute recommending the LGA goes back to level three.
Cr Shields said the water restrictions should be eased due to "improved conditions".
"Since February's low, the [Burrendong Dam] has experienced infows as a result of recent rainfall and is currently sitting at 6.54 per cent - and slowly rising," he said in his mayoral minute.
"Not only has there been some good rain in the Burrendong Dam catchment, good rainfalls have also been recorded throughout the Macquarie Valley. This has resulted in significant natural inflows to the Macquarie River and tributaries, requiring minimal releases from the dam by WaterNSW."
According to the Department of Primary Industries, one-third of NSW is still in drought. Of that, 11.7 per cent is classified as 'intense drought'.
When looking at just the Central West, just under half is considered to be in drought, with 9.7 per cent labelled as 'intense drought'.
Cr Shields said by stepping back to level three water restrictions, it's expected there will be an extra demand of 330 megalitres per year. The inflows to Burrendong Dam currently sit at 582ML per day.
If council follows areas like Narromine, which has already reduced its restrictions, Cr Shields said it was in no way a softening of council's plans to respond to the severe drought.
"It will however, provide some drought respite to the community and businesses - and importantly our economy - while the currently conditions afford us the opportunity to do so," the mayor said.
If Cr Shields' recommendation - which is backed by council staff - is passed on Monday night, the water restrictions will be reviewed again in July.