TAMWORTH Regional Council will move Attunga to level one restrictions next week.
The village, 20km north of Tamworth, has been on the council's base level of restrictions since August 2016.
It's seen as a significant move in the current drought, with Attunga's groundwater supply deemed one of the most reliable in the council area.
The village will move from permanent conservation measures to level one restrictions on Monday.
This means fixed sprinklers can only be used between 5pm and 7pm.
During the drought in 2007, Attunga only made it to level two restrictions.
Water director Bruce Logan said the current drought gripping the region hadn't reached 2007's intensity yet.
While Mr Logan considered Attunga's supply to be reliable into the future, it is a different prospect in 2019 with a Chaffey Dam pipeline being built to shore-up Tamworth's immediate future.
"Attunga has alluvial bores that supplies that town," Mr Logan said.
"As the water flow in the Peel stops or slows, we expect that will have a negative impact on the water level in those bores.
"The pipeline from Chaffey Dam does mean there will be less flow in the Peel River and that may exacerbate the effect on those bores."
By Monday, Barraba will be the only community in the Tamworth Regional Council area left on permanent water conservation measures.
Bendemeer and Manilla remain on level three, while Tamworth, Nundle, Moonbi and Kootingal remain on level four restrictions.