A council in Queensland's Channel Country says it may need to consider applying for a drought declaration in the coming weeks if dry conditions continue.
Diamantina Mayor Geoff Morton says the heatwave conditions over summer means surface water has dried up.
He says a lack of water is forcing some producers to off-load stock.
"Here at Roseberth, I've never seen water evaporate as fast as it did in January," he said.
"You could almost see it with your eyes disappearing ... dams that you thought had three or four months water in them probably now only have two or three months water - for no other reason than the excessive heat."
He says it has been close to a year since there was decent rain on his property.
"It hasn't rained at all down here this summer yet," he said.
"The last decent rain we had here at Roseberth was in March.
"Some places out towards the east are in quite good order but the majority of the shire is struggling a bit.
"Probably 70 per cent or 75 per cent of the shire is in drought conditions.
"We just have to make that next step I think in the next month or two."
© ABC 2013
11:08 EDT Very powerful surf is currently battering the central and southern NSW coast.