At Wednesday's council meeting, Cr Jamie Chaffey was among those who voted to return to permanent water conservation measures from May 1 at the recommendation of water services manager Kevin Sheridan.

The key reasons for reducing the shire from Level 1 water restrictions to the Level P were because of less demand and regular rainfall.

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Cr Jamie Chaffey said the shire's resilience during the drought highlighted that it was a "sound opportunity".

"This sends a very clear message out to the residents, to those who are doing business in our community, and those considering potentially doing business in our community in the future, that ... as we went through the worst drought in living memory, we were on Level 1 self-imposed water restrictions," he said.

"Now coming off that, Gunnedah is a very sound opportunity if you want to do business, or want to have secure water supply as a resident moving into Gunnedah."

The shire went to Level 1 restrictions on January 1 this year because of the ongoing drought but as of last month, Mr Sheridan said bore production capacity had since improved by about 50 per cent.

The week average water use is down to about 8ML a day, half of the average amount in late 2019.

Cr Ann Luke said it was important that the council now consider updating its drought management plan ahead of any future dry times

On permanent water measures, use of fixed hoses and sprinklers is restricted except between 6-8am and 5-9pm during EST. Vehicles and hard/paved surfaces can be washed down with high pressure hoses only and pools should be covered to reduce evaporation.