Kempsey Shire Council Manager Water and Sewer Wesley Trotter claims the prolonged dry weather in the region has resulted in the Macleay River becoming stagnant.
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Mr Trotter said river gauges at Georges Creek and Turners Flat recently showed that the river flow has stopped while water levels in the Steuart McIntyre Dam have fallen to 66.3 per cent.
"Council has been carting water to the Willawarrin township since October 2 and intermittently to the townships of Bellbrook and Thunghutti during the bushfire emergency," he said.
"With the river now no longer flowing, this is likely to continue unless we receive some decent rainfall.
"Everyone should be taking steps to monitor their water usage and be mindful of what they can and can't do under Level 3 restrictions."
The dry weather has also brought a slight increase in algae in Steuart McIntyre Dam.
However, Mr Trotter said biovolume levels in the dam remain under the detection reporting limit of 0.05 mm3/L and water quality remains within Australian Drinking Water Guidelines.
As part of the water conservation measures being implemented under the Level 3 restrictions, from next week Council will disconnect all outdoor taps and showers in council parks, reserves and other open spaces such as beaches.
Internal taps in public toilets and taps at fish cleaning tables will not be affected.
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