The Port Macquarie-Hastings Council is worried the region is heading into drought and keeping a close eye on river levels as the prolonged dry spell continues.
While pumping from the Hastings River is still being carried out to supply water to Wauchope, the river is reaching critical levels.
The Council's manager of Water and Sewer, Andrew Doig said the town might soon have too be supplied from dams.
The combined capacity of the Hastings two main dams, the Port Macquarie and Cowarra is 78.6 per cent.
If it falls to below 70 percent Level 4 water restrictions will be introduced.
There is a 75 day supply until that happens but the short and long term forecasts are suggesting that not much rain will fall to relieve the situation.
Neighbouring Kempsey is already under Level 3 water restrictions.
© ABC 2014
10:26 EDT There are growing concerns there will be a shortage of hay in southern Victoria and South Australia next year.