THE state government's decision to block off the Peel River is having an ongoing effect on one of the city's back-up water supplies.
Tamworth Regional Council has finished work on a 120 megalitre dam at Calala.
This dam, which holds about six days' worth of water, would be used in case of any issue arising with the Dungowan pipeline.
The council initially planned to fill the emergency storage dam with water from the Paradise Wells.
However, the bores haven't been performing well since the Peel River weir was put in place.
The council has received approval from Water NSW to release 80 megalitres from Chaffey Dam down the Peel River to help fill the dam.
This bulk release is more than four-times the daily requirement for residents in Tamworth and Moonbi-Kootingal.
"The lack of flows in the Peel River has impacted the Paradise Wells' performance," Tamworth Regional Council said in a written statement.
"Prior to the drop in performance, staff had been utilising the Paradise Wells to begin filling the raw water storage dam and to augment the town water supply when consumption demands had exceeded the pumping capacity of the Dungowan pipeline."
"It is imperative that council fills the raw water storage dam to provide increased water security for all who rely on the Tamworth town water supply and reduce the risk associated with the supply's current reliance on the Dungowan pipeline."
The bulk releases began on Saturday.
The council's water director Bruce Logan said earlier in the week a drop-off in bore performance had been noticed and played a part in the decision to up Attunga's water restriction to level 2.
"So, we're seeing some connectivity, it's about how much connectivity is the important part," he said.
"The only other bores we use that are connected to the Peel River are the Scott Road drift wells and, yes, we are seeing a reduction in yield from those bores already as a result of the Peel stopping flowing."
The drift wells are listed as an emergency supply option in the council's drought management plan.
"Alternatively, groundwater investigations upstream and downstream of Tamworth, in the vicinity of the Peel River, could be undertaken to identify other potential groundwater bore sites," the drought document said.