TAMWORTH Regional Council could begin auditing the water use of small and medium businesses in town.
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The council has been rolling out a raft of drought initiatives to rein-in water use in the region.
According to conservative estimates, businesses account for almost one-third of daily water use in the city.
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The council voted in April to get an independent auditor to look at the operations of businesses using more 3.5 megalitres a year in the local government area.
The auditors looked at 53 businesses in Tamworth and the reports are being compiled now.
But there is a chance the council could expand the audits, according to its water sustainability officer Ian Lobban.
"We are considering the fact that 3.5 megalitres per annum doesn't capture everyone, it doesn't capture medium and small business," he said.
"In the near future, we could look at lowering that threshold and look at small and medium business.
"That's just an idea, there is nothing formalised."
The completed audits will highlight potential ways businesses could be more water efficient, as well as positive measures already in place.
It is understood the audit's recommendations will not be compulsory.
Mr Lobban said the city's food processors were among the thirstiest businesses in town, but a diverse range of operators had come forward looking to reduce their usage.
"From the car-yards, to the food processors, they have been in communication just to talk with us in general terms, over the last six months, about the things they could be doing," he said.
The audit cost $150,000.
As part of its drought initiatives, the council also spent $10,000 delivering water-saving information packs to more than 1000 motel rooms.
The packs include shower hangers and timers, door hangers, table cards and stickers designed to raise awareness among visitors about the current low levels of water storage in the city.
Mr Lobban said accommodation providers could be among the city's larger water using operators, depending on the size of the business.
"A 10-minute shower can use up to 90 litres of water, so taking a shorter shower can make a big difference to water consumption," he said.
City Sider motel manager Aleyce Simmonds backed the initiative and said it was helpful for locals and visitors.
"As a motel manager and someone who sees a lot of people come through and use a lot of water, I think it was a really fantastic idea," she said.
The packs and shower timers are available for residents and can be picked up at any Tamworth Regional Council office.
"We have purchased timers to help residents limit their shower time to three minutes - we see it as a good investment in reducing the amount of water we use every day," Mr Lobban said.
The council will receive a report at its ordinary meeting on Tuesday with an update on all water sustainability actions, including the installation of automated meter readers.