The local government area has returned to level one restrictions and in October they could be gone completely, says Dubbo Regional Council director infrastructure Julian Geddes.
On Monday night, council voted to return to level one restrictions, effective immediately.
Under the new restrictions there's no time limit on the amount of external watering that can be done. Although during daylight saving time it can't be undertaken during the heat of the day.
The watering of new turf and using a pressure washer with a trigger hose to clean windows is also permitted.
Topping up of private pools and the first fill are allowed as long as the pool has a cover.
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Mr Geddes said the decision to ease restrictions was made based on triggers in the drought management plan, such as council getting 100 per cent of its surface and groundwater allocation, the level of Burrendong Dam and the long-term weather forecast.
The community has also played its part. With the public using an average of 160 litres of water per person, per day Mr Geddes said they were meeting the rules of level four restrictions.
Based on the current behaviour, Mr Geddes said he was confident people would be still be constrained in their water usage.
"It's been a tough time for all aspects of the community over the last little while with the virus, bushfires and drought, I don't think we need to add to that," he said.
"If we can have some positive news stories about improving conditions. I think that's a good thing."
In October, council will review the restrictions to make sure they're at the right level.
"It shows the community that we're taking a measured approach to our response to drought. It's not great to be bouncing between restrictions all the time," the director said.
"Hopefully, come October if conditions improve there may be a case to remove restrictions all together."
But for now, Mr Geddes has encouraged the community to continue to be water wise, regardless of the level of restrictions. He said the drought was still not over.
Tips and tricks for residents to be water wise can be seen at council's Blue House.
It's open every Tuesday between 12pm and 2pm, and on the first Saturday of the month between 9am and 12pm.