Uralla Shire Council has resolved to review the water security for its rural, Bundarra and Uralla residents.

"Significant demands have been placed on the water supply in recent months and the Council has now had to impose Level 4 water restrictions" Mayor Michael Pearce said.

"If demand is not mitigated and the drought conditions continue, the Council will be forced to impose Level 5 restrictions within weeks."

The Council will work with ZNetPlus to provide information to the community on how they can save water.

Meanwhile, the council will continue to explore alternative water sources.

"A workshop is being organised on the 10th of December for the Council to explore avenues to reuse water from the sewerage treatment plant as well as review its existing water strategy to provide greater water security," Council's Acting General Manager Mr David Aber said.

"Any interested potential users who would like to make use of the recycled water are welcome to make contact with the Council."

Mr Aber said the Uralla Sewerage treatment plant produced an average of 428,000 litres of treated effluent per day last year, which is disinfected prior to discharge to Rocky Creek adjacent to the treatment plant.